Selling a house with a reverse mortgage in Florida is completely legal — but it requires careful handling. You’ll need to pay off the reverse mortgage at closing, which can reduce your net proceeds. If your home is underwater or you’re struggling to sell, cash home buyers like Frank Jr. Buys Houses can help you avoid foreclosure and close quickly.
What Is a Reverse Mortgage?
A reverse mortgage (also known as a Home Equity Conversion Mortgage, or HECM) is a special loan available to homeowners 62 and older. Instead of making monthly payments, the loan pays you — using your home’s equity — and defers repayment until:
- You sell the home
- You move out permanently
- You pass away
But what happens if you need or want to sell before any of that happens?
Let’s walk through the process of how to sell a house with reverse mortgage in Florida, the requirements, and how to protect your remaining equity.
How to Sell a House with a Reverse Mortgage in Florida
The process is similar to a traditional home sale — with a few key differences:
1. Contact Your Reverse Mortgage Servicer
Request a loan payoff statement. This document tells you how much is owed, including:
- Principal borrowed
- Accrued interest
- Mortgage insurance premiums (MIP)
- Any servicing fees
This is the minimum amount your home must sell for in order to cover the loan balance and close the sale.
2. Determine Home Value
Get a current market valuation or appraisal to see whether your home’s value exceeds the loan balance.
You may still have equity — especially if your reverse mortgage was taken out several years ago during lower property values.
3. List or Sell the Home
You can choose to:
- List the home traditionally with a real estate agent
- Sell to a cash buyer to avoid delays, repairs, or showings
In either case, the proceeds from the sale go first to pay off the reverse mortgage, and any leftover equity is yours.
4. Close the Sale
At closing:
- The title company pays off the reverse mortgage balance
- Remaining funds go to you
- The mortgage is cleared from the title
You’ve now successfully sold the house — even with a reverse mortgage on it.
Important Considerations When Selling a Reverse Mortgage Property
What If the House Is Worth Less Than the Loan?
If the loan balance exceeds the home’s value, don’t panic. Reverse mortgages are non-recourse loans, which means:
- The lender cannot pursue your other assets
- The FHA insurance covers the shortfall
- You (or your heirs) can sell the home for 95% of its appraised value and walk away
This protects you from going upside down on the loan — a crucial benefit if home values have dropped.
Don’t Wait Too Long
If you’ve moved out or the borrower has passed away, the lender will likely issue a notice requiring the loan to be repaid within 6 to 12 months. If that deadline passes without a sale or refinance, foreclosure can begin.
That’s why it’s important to act quickly if you’re inheriting or vacating a reverse mortgage property.
Selling an Inherited House with a Reverse Mortgage in Florida
If a loved one passes away and leaves behind a home with a reverse mortgage:
- Notify the lender of the death within 30 days
- Request a payoff amount
- Decide if you’ll:
- Refinance the loan
- Sell the house
- Allow the lender to take possession
At Frank Jr. Buys Houses, we help heirs:
- Navigate probate
- Sell inherited homes with reverse mortgages
- Avoid foreclosure deadlines
- Handle liens, code violations, or title issues
Pros and Cons of Selling a Home with a Reverse Mortgage
| Benefit | Explanation |
|---|---|
| You keep leftover equity | Any funds beyond the loan payoff are yours |
| Avoid foreclosure | Selling the house is often better than walking away |
| FHA protects you from owing extra | You won’t owe beyond the home’s value |
| You may owe more than expected | Interest and fees accumulate monthly |
| Time-sensitive if vacated | You must sell quickly once the borrower moves out or dies |
| Traditional sale may take too long | Repairs, showings, and buyer financing can cause delays |
Can You Sell a Damaged or Outdated Reverse Mortgage Home?
Yes — even if the home:
- Needs repairs
- Has hoarding or damage
- Is behind on taxes or insurance
- Is vacant or vandalized
Cash buyers like Frank Jr. Buys Houses specialize in as-is home purchases, which helps sellers avoid repair costs, delays, and foreclosure risks.
Listing vs. Selling to a Cash Buyer in Florida
| Criteria | Listing with Realtor | Selling to Frank Jr. Buys Houses |
|---|---|---|
| Required repairs | Often needed | Not required |
| Timeline | 30–90+ days | 7–14 days |
| Reverse mortgage payoff | Delayed until closing | Paid off immediately |
| Showings & staging | Required | Never required |
| Fees/commissions | 5–6% of sale price | $0 |
| Certainty of closing | Depends on buyer financing | 100% guaranteed |
Need to Sell a Reverse Mortgage House in Florida? We Can Help
Whether you’re the homeowner or an heir, dealing with a reverse mortgage can feel overwhelming — especially when you’re facing deadlines, repairs, or legal confusion.
At Frank Jr. Buys Houses, we offer a simple solution:
- Buy homes with reverse mortgages
- Handle payoff directly with the lender
- Purchase as-is — no repairs or cleanouts
- Close in as little as 7 days
- Local to Orlando and trusted across Central Florida
Call (305) 775-8750, or Request a Free Cash Offer Here
FAQ: Sell House Reverse Mortgage Florida
Can I sell my house if I have a reverse mortgage?
Yes. You can sell anytime — but the reverse mortgage must be paid off at closing.
How much equity do I need to sell?
You’ll need to sell the home for at least the reverse mortgage payoff amount. If the home is worth less, you may still sell it under FHA’s 95% rule.
Can I sell an inherited home with a reverse mortgage?
Yes — but you must notify the lender and act quickly to avoid foreclosure.
Do I have to clean or repair the house before selling?
No. Cash buyers purchase homes as-is, even with damage, hoarding, or liens.
Final Word: Don’t Let a Reverse Mortgage Stop You from Selling
Selling a house with a reverse mortgage in Florida is more common than you think — but it comes with time limits and fine print.
If you’re facing:
- Foreclosure notices
- Inheritance complications
- Urgent need to sell
- Major home repairs
…then skip the stress and sell directly to a local, experienced home buyer who understands reverse mortgage properties.
Get a fast, fair cash offer today. Serving Orlando, Orange County, Osceola County, and beyond.