Selling a Home with a Reverse Mortgage in Fort Collins: What You Should Expect

by Jason Levi

Can I sell my home in Fort Collins if it has a reverse mortgage?

Yes, you can sell a home in Fort Collins with a reverse mortgage. The process involves paying off the reverse mortgage balance at closing—typically from the sale proceeds. Any remaining equity is yours. This process requires careful coordination with your lender and title company.

Voice Search Q&A: Selling a Reverse Mortgage Home in Fort Collins

Q: Can I sell a home in Fort Collins with a reverse mortgage?
A: Yes. The reverse mortgage is paid off at closing, and any leftover equity goes to you or your heirs.

Q: What happens to a reverse mortgage when I sell?
A: The loan becomes due upon sale. The proceeds are used to pay the lender, and remaining funds are yours.

Q: Do I need lender approval to sell a home with a reverse mortgage?
A: You don’t need approval, but you must request a payoff statement and coordinate with the lender before closing.

What Is a Reverse Mortgage?

A reverse mortgage, also called a Home Equity Conversion Mortgage (HECM), allows homeowners aged 62+ to borrow against their home’s equity without monthly payments. Instead, the loan becomes due:

  • When the homeowner sells the home
  • Moves out permanently
  • Or passes away

Selling a Home with a Reverse Mortgage: Step-by-Step

1. Get a Payoff Statement

Before listing, request a payoff statement from your reverse mortgage lender. This will show:

  • Principal and accrued interest
  • Mortgage insurance premiums (if any)
  • Any servicing fees

2. Estimate Your Equity

Subtract your total loan balance from your home’s estimated market value. In Fort Collins, home values remain strong, with a median price around $580,000 as of Q2 2025. This may leave you with significant remaining equity.

3. List and Market Your Property

Work with an experienced local team like The Levi Group to:

  • Accurately price your home based on neighborhood comps in areas like Fossil Lake Ranch, Rigden Farm, or Maple Hill
  • Professionally market to the right buyer pool
  • Prepare the home for showings and inspections

4. Sell and Pay Off the Reverse Mortgage

At closing:

  • The sale proceeds pay off the reverse mortgage in full
  • Remaining equity is distributed to you (or to your heirs, if the homeowner has passed away)

Special Considerations for Fort Collins Sellers

  • HOA Restrictions: Some 55+ communities in Fort Collins may have resale rules that affect marketing or pricing.
  • Appraisal Requirements: Reverse mortgage lenders often require a formal appraisal during payoff.
  • Heirs Selling Inherited Property: If you're an heir selling a parent’s reverse-mortgaged home, you must coordinate with the lender and may be given a short timeline to sell or refinance.

What If the Home Is Worth Less Than the Loan?

If the home sells for less than the reverse mortgage balance:

  • The lender absorbs the loss, not the seller or heirs (this is known as non-recourse protection)
  • You must work with the lender and provide documentation to verify the sale price reflects fair market value

Why Work with The Levi Group?

Selling a home with a reverse mortgage requires accuracy and empathy. At The Levi Group, we:

  • Understand reverse mortgage payoffs and title coordination
  • Help heirs and estate representatives navigate the sale with clarity
  • Price competitively in Fort Collins neighborhoods to ensure maximum net proceeds
  • Communicate with lenders and title companies to prevent delays

We’re a top-rated, local team with a track record of guiding Fort Collins homeowners and their families through complex transactions with professionalism and care.

Final Thoughts: What to Expect When Selling a Reverse Mortgaged Home in Fort Collins

Selling a home with a reverse mortgage is very doable—but it comes with specific steps and timelines. Whether you’re a homeowner ready to downsize or an heir settling an estate, The Levi Group can help you manage the sale efficiently and respectfully.

Have questions about selling your Fort Collins home with a reverse mortgage? Contact The Levi Group for trusted local advice.

📞 Call or Text: (970) 426-8916
📧 Email: jason@thelevigroup.net
🌐 Visit: https://thelevigroup.net

Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or tax advice. Please consult with licensed professionals for personalized guidance.

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