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Reverse Mortgage

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We often have to make some tough decisions, as we get older every day. If you are caring for an elderly relative, the choice of whether to move them to a care home is a difficult one. Emotions at this time are likely to be running high. But there is an alternative that not many people realize. Your relative could sell your own home with the help of a reverse mortgage.

Can Seniors Sell Their Home After Getting a Reverse Mortgage?

When it comes to selling one's home after taking a reverse mortgage, many seniors find much of the available reverse mortgage information confusing. The fact is seniors can choose to sell their homes at any time, but they should be aware that doing so will make their loan due. To get the most from the investment,
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Reverse mortgages become due once all borrowers named on loan die. If there are two borrowers, both individuals must pass away before their lender can require repayment.

Since the borrowers would not be in a position to repay the loan themselves, the responsibility would be handed down to their heirs. In this case, the borrowers' heirs would have three main choices: sign the deed over to the bank, sell the home, or refinance the loan. If the balance of the loan exceeds the home value, heirs could avoid the responsibility of selling the house by signing the residence over to the lender.

If the home is worth more than the loan balance, heirs will benefit more from selling the house themselves. As long as the individuals make a reasonable effort to sell the home, the lender should give them 12 months to find a buyer. Once the house is sold, the lender will be repaid, and the borrowers' heirs will keep any remaining funds. It is, however, essential to understanding that the lender will expect the home to be sold for its appraised value. If the selling price is much lower than the estimated cost, the lender might require additional payment. It keeps people from taking advantage of lenders by selling homes to family or friends at much-discounted
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