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

What should you expect when selling a home with a reverse mortgage in Lafayette, Colorado?

When selling a home with a reverse mortgage in Lafayette, Colorado, the loan must be paid off in full at closing—typically through the sale proceeds. The process can be more complex than a traditional mortgage sale, but with help from experts like Kirsten Johansson of The Levi Group Brokered by Real, homeowners can navigate it smoothly and successfully.

What Is a Reverse Mortgage?

A reverse mortgage is a loan available to homeowners aged 62 or older, allowing them to convert home equity into cash without making monthly mortgage payments. The loan balance grows over time and becomes due when the homeowner moves out, sells the home, or passes away.

In Lafayette, reverse mortgages are often used by retirees looking to age in place or access additional funds during retirement.

Can You Sell a Home With a Reverse Mortgage?

Yes, you can absolutely sell a home with a reverse mortgage. The loan is repaid at the time of sale, and any remaining equity goes to the homeowner or their heirs. The process is legal, common, and supported by federal lending guidelines.

Key Steps to Selling a Lafayette Home With a Reverse Mortgage

1. Determine the Payoff Amount

Contact the reverse mortgage lender to request a payoff statement. This will show the loan balance, including accrued interest and fees.

2. Assess Market Value and Equity

Work with a local expert like The Levi Group to determine your home’s current market value. Compare it to the loan payoff amount to estimate how much equity you may receive from the sale.

3. List and Market the Home

Once you know you can sell with equity—or are prepared for the outcome—list the home. A real estate agent will handle photography, marketing, and showings. Lafayette neighborhoods like Waneka Landing, Indian Peaks, and Blue Heron Estates remain attractive to buyers.

4. Navigate the Title and Closing Process

The title company will coordinate with the reverse mortgage lender to ensure the loan is paid at closing. If the sale proceeds exceed the loan amount, you receive the remaining funds. If not, you may need to bring cash to close—though this is rare with appreciating Lafayette home values.

Selling a Reverse Mortgaged Home After the Owner Passes Away

If you're an heir handling the sale of a home with a reverse mortgage, you have a few options:

• Sell the home and repay the loan from the sale proceeds

• Sign the home over to the lender with a deed-in-lieu of foreclosure

• Refinance the loan if you wish to keep the property

Lenders often provide a 6-month window for heirs to make arrangements, with possible extensions.

Common Concerns About Reverse Mortgage Sales

Will I owe more than the home is worth?

No. Reverse mortgages are non-recourse loans. If the loan exceeds the home’s value, the lender cannot go after other assets—the FHA mortgage insurance covers the difference.

Will I have enough equity left?

That depends on how long you've had the reverse mortgage and how much home values have appreciated. Lafayette’s steady market growth often preserves some equity for sellers.

Why Work With The Levi Group?

Selling a home with a reverse mortgage isn’t something to do alone. The Levi Group Brokered by Real offers:

• Accurate pricing guidance tailored to Lafayette’s market

• Coordination with reverse mortgage lenders and title companies

• Compassionate service for senior sellers and heirs

• Expert marketing and negotiation to help maximize proceeds

Final Thoughts: Selling a Reverse Mortgaged Home in Lafayette

While it’s more complex than a traditional sale, selling a home with a reverse mortgage in Lafayette is entirely doable. With the right information and the right team, you can move forward confidently and preserve as much equity as possible.

Contact Kirsten Johansson of The Levi Group Brokered by Real
📧 kirsten@thelevigroup.net
📞 (603) 583-0151
🌐 www.thelevigroup.net

Your Lafayette Home Selling Experts

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