Hi. I’m Ben Souchek with Home Downsizing Solutions. One of the questions that we get quite often is, do you buy houses with a reverse mortgage? And generally the answer is yes, we certainly do.
A reverse mortgage is simply just another debt or lien that’s on the property.
Typically what we will do when we have a situation like that, is the homeowner will typically know approximately the amount of debt that is owed with the reverse mortgage. But what we can simply do is, once we have an agreement in place to purchase the house, we can have the title company contact the lender to get a full payoff, which is typically different than just a balance due, because of the interest is accruing every day.
So the title company will take care of getting the exact amount of the payoff to the day of closing and then just pay the lender off just as we would, or just as they would on a normal loan or lien against a property. So it’s a very simple straightforward process.
Yes, we certainly can buy houses with reverse mortgages on. The only time that would be different is if that debt has climbed to the point where the value of the house is less than the amount of debt that’s on the house. Again, just like a regular lien, if there’s too much debt on the house then we’re limited on what we can do for a homeowner or home seller.
But to start the process, if you have a reverse mortgage and you are considering selling the house, certainly give us a call. We can provide the same benefits that we would in any other circumstance, in that we would buy the house as is. The home seller does not need to do any updating, any improvements.
If you have stuff in the house that has accumulated over the years that you don’t care about, sell the stuff you want to sell, take and move the things you want to take, and anything that’s left in the house just leave it and we will take care of it.
Typically we will wire funds in to the title company when we close. The title company will pay off that underlying debt, whether it’s a regular loan or a reverse mortgage, and the transaction goes just as it would any other time.
To check us out if you have more questions go to www.homedownsizingsolutions.com. Contact us and we’d be happy to help you in any way that we can. Thank you very much.