Navigating the Sale of a Home with a Reverse Mortgage: A Clear Path for Ventura County Homeowners
If you or a loved one has a reverse mortgage on your Ventura County home and you’re thinking about selling, you’re not alone—and you’re not stuck.
Whether you’re downsizing, moving closer to family, or handling a transition after a loved one passes, understanding how a reverse mortgage impacts the sales process is key to moving forward confidently.
Let’s walk through what you need to know and how I can help you manage the journey with ease and clarity.
First, What Is a Reverse Mortgage?
A reverse mortgage is a loan available to homeowners age 62 or older that allows them to convert part of their home equity into cash, without making monthly mortgage payments. The loan is repaid when the homeowner sells the home, moves out, or passes away.
While it offers financial flexibility in retirement, it also adds an extra layer of logistics when it’s time to sell.
Can You Sell a Home with a Reverse Mortgage?
Yes, absolutely.
You can sell a home with a reverse mortgage at any time. The process just involves repaying the balance of the loan at closing, similar to a traditional mortgage payoff.
Here’s how it works in simple steps:
Step 1: Get a Current Loan Balance (Payoff Amount)
Your first move is to request a payoff quote from your reverse mortgage lender. This will tell you exactly how much is owed on the loan, including interest and any fees. This number is critical for understanding your net proceeds.
Step 2: Determine the Home’s Current Market Value
This is where I come in. We’ll assess the home’s current value based on recent Ventura County sales, condition, and local demand. If the value of your home is higher than the loan balance, the difference is your equity and your profit.
If the home is worth less than the loan balance, don’t panic. Most reverse mortgages are non-recourse, meaning you or your heirs won’t owe more than the home’s value at the time of sale. The FHA or mortgage insurer covers the difference.
Step 3: Prepare the Home for Sale
Homes with reverse mortgages are often long-time residences. That means some TLC, decluttering, or strategic staging might be helpful to showcase its best features. I specialize in guiding downsizers and retirees through this with compassion and care.
Together, we’ll:
- Identify low-cost improvements that boost appeal
- Arrange trusted vendors if needed
- Handle everything from photography to open houses
Step 4: Close the Sale and Pay Off the Loan
At closing:
- The reverse mortgage is paid off using the buyer’s funds
- Any remaining equity goes to you (or your estate, if the homeowner has passed)
- You walk away with peace of mind—and often, a financial cushion for your next chapter
What If You’ve Inherited a Home with a Reverse Mortgage?
If you’re the heir or executor of an estate, and the property has a reverse mortgage:
- You can sell the home to repay the loan
- You can refinance the loan if you want to keep the home
- Or, you can sign over the deed to the lender (deed-in-lieu) if there’s no equity
These are delicate situations—emotionally and legally. I’m here to walk you through each option with care and clarity, ensuring you and your family make the right move.
Common Questions from Ventura Sellers
“Will I still owe money if the home is underwater?”
No. Reverse mortgages are insured, and you’ll never owe more than the home is worth.
“Does the process take longer?”
Not usually, but having an experienced agent who understands reverse mortgages makes a huge difference in avoiding delays.
“Can I use the equity to buy another home?”
Yes! Many clients sell their reverse-mortgaged home and use the equity to purchase a smaller home, condo, or property in a 55+ community with no mortgage, or with a much smaller one.
You’re Not Alone in This
Selling a home with a reverse mortgage can feel complex, but it doesn’t have to be overwhelming.
With the right support, you can:
✅ Understand your loan payoff
✅ Make smart choices about repairs or staging
✅ Navigate probate or inheritance issues
✅ Move forward with confidence—financially and emotionally
If you’re ready to start the conversation, I’m here to help.
Let’s talk about your next chapter—and how we can make it smooth, successful, and stress-free.
📞 Call Roylin Downs today at 805-850-5443 or message me for a private consultation.
You’re in good hands. Let’s move forward—together.
