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Colorado Real Estate Agents for Reverse Mortgages and Probate

Brian Lee BurkeBrian Lee Burke
Oct 25, 2024 • 4 min read
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Colorado Real Estate Agents for Reverse Mortgages and Probate

Colorado’s Trusted Partner for Reverse Mortgage Real Estate

Having an experienced real estate agent by your side can make all the difference in reverse mortgage transactions in Colorado. At The Kenna Group at Keller Williams DTC, we’re here to guide clients through the nuances of reverse mortgage property sales and purchases, including probate property sales for estates. Our team understands the ins and outs of these unique transactions, ensuring that clients are informed and empowered throughout every step of the process.

Understanding Reverse Mortgages and Real Estate in Colorado

A reverse mortgage allows homeowners aged 62 and older to tap into their home’s equity for extra financial support without making monthly payments. The FHA-insured Home Equity Conversion Mortgage (HECM) is one of the most popular reverse mortgage options, providing federal insurance for added security. With a reverse mortgage, homeowners can access cash for any purpose, whether helping family members purchase their home, covering healthcare expenses, or supplementing retirement funds.

Probate and Reverse Mortgage Sales

In addition to regular transactions, The Kenna Group specializes in probate property sales. Selling or buying a property under probate in Colorado involves specific legal steps to ensure compliance with probate court regulations, often involving the home of a loved one who has passed away. These sales require an in-depth understanding of the probate process we manage seamlessly to relieve families of stress. We handle:

  • Marketing probate properties effectively to find buyers.
  • It ensures transparency in every transaction and documents all communications.
  • We are coordinating with probate requirements and completing the sale.

Why Choose The Kenna Group?

With over 20 years of experience in Colorado real estate, The Kenna Group agents bring unmatched expertise to every transaction. Our knowledge of reverse mortgage guidelines, Colorado probate, and local market trends makes us an ideal choice for clients seeking specialized assistance. Here’s what we provide:

  • Personalized Guidance: Every reverse mortgage transaction is unique. We tailor our approach to ensure each client’s specific financial and personal goals are met.
  • Probate Expertise: Navigating a probate sale is easier with experts who understand Colorado’s real estate requirements. We handle all aspects, from paperwork to property staging and marketing.
  • Transparent and Honest Communication: Whether buying or selling, we keep clients informed every step of the way.

Contact The Kenna Group Today

Are you considering a reverse mortgage or have questions about buying or selling probate properties in Colorado? Contact The Kenna Group for expert guidance and compassionate service tailored to your needs.

Heirs selling a parent's house with a reverse mortgage? Read selling a house with a reverse mortgage in Colorado: the 30-day letter, the 6-month deadline, the 95% rule and who signs the sale.

Contact The Kenna Group

What happens to a reverse mortgage when the owner dies?

Short answer: when the last borrower on an FHA reverse mortgage (HECM) dies, the loan becomes due. The heirs can sell the house, pay off the loan or hand the home to the lender. Under HUD's HECM rules they usually get about 6 months to sell or pay off, and the servicer can ask HUD for extensions; the servicer's letter sets your exact dates.

StepWhat usually happensWho confirms it
1. Notice to the servicerThe family tells the loan servicer the borrower has died. The servicer sends a due-and-payable letter.The servicer
2. About 30 days to answerHeirs say in writing whether they plan to sell, pay off or give the home back.The servicer's letter
3. About 6 months to finishHeirs list and close the sale or refinance. Extensions are possible when the home is actively for sale.The servicer, with HUD approval
4. The 95% ruleAn HECM is non-recourse: if the house is worth less than the balance, heirs can satisfy the loan with the lesser of the balance or 95% of the appraised value.HUD rules, the servicer's appraisal

How do heirs sell a house with a reverse mortgage in Colorado?

  1. Find out who can sign. If the home is in the estate, the personal representative signs once the court issues Letters (C.R.S. 15-12-715). If it sits in a living trust, the successor trustee signs.
  2. Ask the servicer for a payoff and the deadline in writing before you pick a list price.
  3. Price to today's market. We pull the closed sales near the home and give you a net sheet: price, payoff, selling costs and what the estate keeps.
  4. Send the servicer proof of the listing and the signed contract; that record supports an extension if the sale runs long.
  5. Close with the title company, which pays the servicer from the proceeds and sends the rest to the estate or trust.

What to watch out for

  • Don't ignore the servicer's letters while probate is open; ask for the timeline in writing.
  • Keep the home insured, the property taxes paid and the utilities on. An empty house in a Colorado winter needs heat and someone checking on it.
  • Don't sign with a cash buyer before you know the payoff and the appraised value; under the 95% rule an underwater home can still close without the heirs paying the gap.

Next steps: the Colorado probate real estate guide, selling a parent's house in Colorado, how to sell a probate home in Colorado, selling a house in probate in Colorado and the free Colorado probate seller checklist.

How do I find a realtor near me in Denver who sells reverse mortgage homes for heirs?

Call or text 303-955-4220. A live person answers. The Kenna Group at Keller Williams DTC sells inherited homes with reverse mortgages across the Denver metro, Colorado Springs and Northern Colorado and works with the servicer, the personal representative and the title company.

Do heirs have to pay the reverse mortgage out of their own pocket?

No. An FHA HECM is non-recourse. The debt is paid from the house; heirs who want to keep the home pay the lesser of the balance or 95% of the appraised value.

Reverse mortgage and probate sale disclosure: this post is general information about reverse mortgages (HECM) when the borrower dies, heirs selling a house with a reverse mortgage in Colorado, and probate home sales. It is not legal, tax or lending advice; your servicer, a Colorado probate attorney and a HUD-approved housing counselor can answer for your loan. Sources: U.S. Department of Housing and Urban Development (HECM program rules); Consumer Financial Protection Bureau; Colorado Probate Code, C.R.S. Title 15. The Kenna Group at Keller Williams DTC, Keller Williams Realty DTC, LLC; each office independently owned and operated. Not affiliated with HUD or any lender.

Where to go next

Talk to The Kenna Group

The Kenna Group answers luxury homes across the Front Range questions every day, from Fort Collins to Colorado Springs. Call or text 303-955-4220. A live person answers. Not a robot, not a phone tree. Or search every home for sale in Colorado right now.

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WRITTEN BY
Brian Lee Burke
Brian Lee Burke
Team Leader and Licensed Broker, REALTOR® since 2003, Author

Brian Lee Burke is the founder and team leader of The Kenna Group, a real estate group at Keller Williams DTC. A licensed REALTOR® since 2003, Brian helps Colorado buyers and sellers navigate residential real estate, new construction, pricing, and negotiation. He is also the author of The Real Estate Playbook and Mastering Real Estate: Your Guide to Becoming a Top Agent.

View Brian Lee Burke’s full profile.

WRITTEN BY
Brian Lee Burke
Brian Lee Burke
Team Leader and Licensed Broker, REALTOR® since 2003, Author

Brian Lee Burke is the founder and team leader of The Kenna Group, a real estate group at Keller Williams DTC. A licensed REALTOR® since 2003, Brian helps Colorado buyers and sellers navigate residential real estate, new construction, pricing, and negotiation. He is also the author of The Real Estate Playbook and Mastering Real Estate: Your Guide to Becoming a Top Agent.

View Brian Lee Burke’s full profile.