How to Resolve a Reverse Mortgage
A reverse mortgage is a way for senior citizens to earn monthly income against the value of their home that is paid off in full. If the applicant then wants to resolve the reverse mortgage, they will need to pay off the total amount of payments, or take out a traditional mortgage in order to stop the process.
- Contact the lender who issued the reverse mortgage and let them know that you would like to resolve it.
- Ask for the payoff amount that will be needed in order to resolve the reverse mortgage. The amount of money that has been given against the value of the home plus interest will be included in the total payoff amount.
- Ask the lender what options they offer to help you to resolve the reverse mortgage. Typically you can either sell the home and use the funds to pay off the amount owed, pay the payoff amount in full or refinance the home.
- Determine which option you will be using to resolve the reverse mortgage based on which method is the best for you. If you plan to continue living in the home, you will need to refinance or pay the payoff amount in full.
- Contact a local bank about refinancing the home if this is the option that you have chosen. The bank representative can help you to fill out all of the required paperwork needed to start the process.
- Visit a local real estate agency in the area if you are planning on selling the home. Let the real estate agent that you are working with know that there is a reverse mortgage currently on the home.
- Make sure that you receive a payoff letter once the payoff amount has been repaid to the reverse mortgage lender.