Short answer
Possibly. The CFPB guide says if your HECM is in default and you received a notice that the loan is due and payable, you may sell for 95 percent of the appraised value or the amount owed, whichever is less. Mortgage insurance pays a remaining balance. Ask your servicer about the process.
The rule in the guide
The CFPB's guide has a table on how a reverse mortgage is paid when you sell. For a loan in default where you have received a notice that it is due and payable, it says you may sell your home for 95 percent of its appraised value or the amount owed on the loan, whichever is less. The money from the sale goes to the loan balance.
Who pays any shortfall
The same table says the mortgage insurance will pay any remaining balance if the sale does not cover the loan balance. That applies to HECM loans, which the guide says are federally insured through FHA. Do not assume your loan is a HECM. Ask your servicer which type it is.
What triggers default
The CFPB explains that unpaid property taxes or homeowners insurance, failure to maintain the home and ceasing to live there as a principal residence can make a reverse mortgage due. Acting before a foreclosure filing keeps more choices open. A reverse mortgage default is not the same as a forward mortgage default.
Where to get help
The guide lists organizations that help reverse mortgage borrowers, including HUD-approved counseling agencies. This page is general information and not legal advice. A Pennsylvania attorney who handles reverse mortgages can review your notice and your deadlines.
Selling for cash instead
A due-and-payable notice puts a clock on the house, so a set closing date can be useful. If you want a direct sale, Kaizen Home Buyers can make a cash offer on the house exactly as it stands. There are no repairs and no agent commission. An offer can come within 24 hours, and closing takes 14 to 30 days or lands on your date. The number is 267-329-0084.