Short answer
Yes. The CFPB guide says if you sell, you repay the money borrowed plus interest and fees. If the sale price covers the loan balance, the loan is paid in full and you keep what is left. For federally insured HECM loans, mortgage insurance pays a shortfall in the situations the guide describes.
What happens at closing
The Consumer Financial Protection Bureau's guide for reverse mortgage borrowers says that if you sell while the loan is in place, you must pay back the money borrowed, plus interest and fees. If you sell for at least the loan balance, the loan is paid in full and you keep whatever money is left after the payoff. Most reverse mortgages today are HECMs insured by FHA.
If the sale is short
The guide says if you sell for at least the appraised market value, the money pays off the outstanding balance and the mortgage insurance pays any remaining balance if the sale does not cover what you owe. It describes these rules for HECM loans. Non-HECM loans may differ, so read your loan documents and ask the servicer.
Selling is one of the repayment triggers
The CFPB also lists selling the home as one of the events that makes the loan due, along with the last borrower dying or no longer living there as a principal residence. Ask your servicer for a payoff figure in writing, and a good-through date, before you accept an offer.
Get counseling
A HUD-approved housing counselor or an attorney can walk you through the payoff and what you will net. This page is general information and not legal advice. The guide lists places to get help.
Selling for cash instead
A payoff that grows each month is a reason some owners want a firm closing date. You can also ask Kaizen Home Buyers for a cash offer. We buy as-is, with no repairs and no agent commission, make offers within 24 hours and close in 14 to 30 days or on the date you set. Reach us at 267-329-0084.