Does A Reverse Mortgage Leave Home Value For Heirs Or Estate? When the home is sold or the owner dies, the principal, interest and other finance charges must be paid. All proceeds or equity beyond this belong to the borrower’s estate. Reverse mortgages do NOT encumber heirs or estates with debts. If you are inheriting an estate with a home involved in a reverse mortgage, contact the servicer of the loan with details of your situation to learn about your next steps.

Reverse mortgages and home equity loans both use equity as collateral. Home equity loans do not have an age requirement; reverse mortgages require the owner be at least 62. HELOCs must be repaid over time - typically 5 or 10 years; Reverse mortgage payback is generally upon sale or borrower death. Rates on the two may be comparable, but borrowers should shop. Reverse mortgage closing costs are generally higher, but typically, these costs can be financed as part of the reverse mortgage loan.

The types of homes that may qualify for a reverse mortgage include single-family homes 2-4 unit properties, condominiums, townhouses and newer manufactured homes. Co-ops do not qualify. The owner must be at least 62 with enough equity in the home to qualify. Borrower credit and medical status are not relevant to loan payments since you don’t make loan payments on a reverse mortgage. Lenders will assess borrowers’ financial capacity to pay taxes and insurance, and may set aside loan funds 
 to pay these in the future.

A reverse mortgage lends you money against the value owned in your home. Repayment is not required until the home is sold or the borrower dies. Then the loan amount plus interest is repaid by selling the home. The lender has a primary claim a ‘lien’ against the home to secure the loan and interest. Income from the proceeds of a reverse mortgage are generally not taxable. Owners still pay property taxes and insurance

As you will see in the video, every home and market is a unique situation. Good marketing plans are specific to both. But every plan will include: Preparation Pricing and Marketing Activities. Preparation takes time - typically, months. Homes must be in show condition all repairs and upgrades complete and all photos and video completed before the home goes on the market. Pricing, likewise, should be planned in advance. Your broker will advise on both the best price and the best TERMS things like closing costs and seller credits to balance sales speed with sales price. Once the home is on the market it will quickly be entered in the MLS and will show up in Internet searches by agents and buyers. Your broker will advise other marketing activities including advertising, signage, showing and open house events so make the best of your situation. Their aim is to get negotiable offers, and then take the offer you accept through the closing process.

Home size is one of the key figures used in comparisons. But you may have different measurements to choose from, as you will learn in this video,including builder, appraiser, tax records and possibly owner records. Which one is right, and which one is best? The official figure is the one in tax records - typically, the county. Any other figure must be documentedby a builders floor plan, an appraisalor an official floor plan, prepared by a company for a fee. If your house has been remodeled and you are planning to sell you may want to confirm that the official record matches youractual house - and update if required. Most lenders will require an appraisalwhich will verify the figures you used.So be accurateand keep recordsto make the most of your sale.

While this video simplifies things to help you remember: your aim is to get the best price AND terms in your market during the period you are selling. Market conditions interest rates and competition all matter. The price you want, and the price a buyer will pay are framed by those complex conditions So pricing isnt completely predictable. Other factors include: How your home compares to other homes for the same buyers The inventory of homes and the level of buyer demand Your needs also affect negotiations - for example, if you must sell quickly - but the final price will be determined by the market not by your needs. Buyers look at the same comparables and market conditions and they want to pay as little as possible while meeting their needs. Remember that the price isnt the entire deal - repairs, closing, points, appliances and other factors can all change the value you finally receive. Listen to your broker, stay informed, be patient if you can and make your best reasonable, unemotional decisions.

The best answer is get help from a real estate professional. But...if you only have a few minutes for a video, ere are five points to consider. 1. Start With Measurement Learn the average per-square-foot price for recent sales in your neighborhood. That will not set your final price, but it is a baseline buyers will use. 2. Get Comparisons Ask for Comparative Market Analysis - comps - from several agents. Go through each comp with each agent to understand both competitive homes on the market AND each agents potential approach to yours. 3. Market Research. Do your own! - not just online, but in person. That will help you understand your market conditions and the buyers perspective realistically. Markets get hot and cold, up and down, and yours defines the sales envelope for your home. 4. Consider All Terms Price isnt all there is to a sale. Can you close faster? Finance or lease-option the sale yourself? Cover some closing costs? Your flexibility can make sales leverage. 5. It is Not Personal. The hardest tip of all. Most people are emotional about their home. Pricing, in the long run, is going to logical. Theyre buying your house,not your home & memories. Find a real estate professional you like and trustand let them help you through the process.

This video tells you what any real estate professional would tell you. Ask them: How long do homes in my neighborhood currently stay on the market? How would you price my home? What data did you use to arrive at that price? How would you market my home? What activities would you expect of me to market my home? How will you handle representation if one of your buyers is interested in my home? May I speak with sellers youve recently represented? How long a period would you want on a listing agreement for my house? It is best to ask these questions, and be comfortable with your choices before signing a listing agreement.

Like the video shows, it is a good idea to compare several. And ask these questions. What is your experience in my community and neighborhood? What type of representation do you offer? Different states have different types. Some brokers represent buyers, some represent sellers some act as neutral parties between both. and in some states, different people at a single firm can handle each side in a transaction. And of course, what are your terms and fees? Get the key facts in writing to help you compare your options. Then make the best choice for your situation.