Does a short sale work on a reverse mortgage?
Yes, a short sale can work on a reverse mortgage because you, as the owner, still have fee simple ownership.
A short sale on a reverse mortgage usually works the same as a FHA short sale, in the sense that you’ll need approval from the lender AND the insurer. The reverse mortgage is usually insured by HUD if the loan is a Home Equity Conversion Mortgage (HECM). The HECM reverse mortgage is used about 95% of the time on reverse mortgages.
