Reviewed by Samantha S. Peel, Mortgage Loan Officer
NMLS #2685482 · Licensed in Georgia & South Carolina · More than 12 years working with seniors and their families in senior living before joining MCS. Last reviewed September 26, 2026.
Separate the money question from the family question
Families argue about the house when they are actually arguing about fairness, caregiving, or who was around. The financial analysis below is genuinely useful, but it will not settle a disagreement that is not about money. It helps to name which conversation is happening. A house should not be kept or sold to settle a score.
The options on the table
Every one of these is a real answer for somebody. None of them is the right answer for everybody.
Sell outright
Pays us nothing
- How it works
- List the home, take the proceeds, and use or divide them.
- Best when
- Nobody will live in it, upkeep is a burden, or the proceeds are needed for care. It is the simplest option and carries no ongoing cost or interest.
- Watch out for
- Selling costs money — commission, repairs, and closing costs. Timing affects price. And once it is gone, it is gone.
Sell and buy something smaller
MCS may be able to help with the purchase
- How it works
- Use the proceeds to buy a home that fits, with or without financing.
- Best when
- The homeowner wants to keep owning but the current house is too big, too remote, or too hard to maintain.
- Watch out for
- See our downsizing page for how to finance the next purchase. The main risk is spending all the proceeds on the new house and leaving no reserve.
Keep it and borrow against the equity
MCS may be able to help
- How it works
- A reverse mortgage, HELOC, or refinance provides funds while the homeowner stays.
- Best when
- The homeowner wants to stay, the house still works for them, and the need is for cash flow rather than a lump sum exit.
- Watch out for
- This spends the equity gradually rather than all at once, and reduces what heirs receive. It only makes sense if someone is actually living there long term.
Rent it out
Pays us nothing
- How it works
- Keep the house and lease it, using rent to cover carrying costs and possibly more.
- Best when
- The market is strong, the house is in good repair, and a family member or a manager is genuinely willing to handle it.
- Watch out for
- Being a landlord is a job. Most families who choose this route underestimate it. Vacancy, repairs, and tenant issues fall on whoever volunteered, and that person often comes to resent it. Reverse mortgages generally require the borrower to occupy the home, so this option usually rules that out.
Hold it for now and decide later
Costs nothing, pays us nothing
- How it works
- Keep the house empty or lightly used while the family sorts out care, estate, and tax questions.
- Best when
- A decision is not yet required and the carrying costs are manageable. There can be meaningful tax considerations in the timing of a sale relative to an estate — a question for a tax advisor, not a lender.
- Watch out for
- Empty houses deteriorate and insurers often restrict coverage on vacant property. Check the policy. Carrying costs add up quietly.
When a loan against the home is the wrong answer here
Keeping the house and borrowing against it is the wrong answer when:
- Nobody is living in it. Reverse mortgages generally require the borrower to occupy the home as a principal residence. This is not a way to hold an empty house.
- The house is in poor repair. Deferred maintenance compounds. Borrowing to postpone a sale on a deteriorating house usually means selling later for less.
- The family is divided and using the loan to avoid the conversation. Financing does not resolve a disagreement; it just moves it to a worse moment.
- The carrying costs exceed what the equity can support. Run the arithmetic over ten years, not one.
- Estate or tax considerations have not been reviewed. The timing of a sale can matter for tax purposes. Ask a CPA or estate attorney before, not after.
Questions worth asking before anyone decides
Bring these to a family conversation, a counselor, or any lender — including us.
- Is anyone actually going to live in this house, and for how long?
- What does it cost to keep per year — taxes, insurance, utilities, and realistic maintenance?
- What would it sell for today, after repairs and commission?
- Have we asked a tax advisor about the timing of a sale relative to the estate?
- Is this disagreement about the house, or about something else in the family?
- If we keep it for three years and then sell, are we better or worse off than selling now?
Independent places to check our work
You should never take a lender’s word as the only word. These organizations are not affiliated with Mortgage Capital Services and do not pay us or receive payment from us.
Important: This page is educational and is not financial, legal, or tax advice, a recommendation, or a commitment to lend. Loan program availability, costs, and requirements are set by lenders and investors and may change. All loans are subject to credit approval and property eligibility. Reverse mortgage borrowers remain responsible for property taxes, homeowners insurance, property maintenance, and other loan obligations. Loan proceeds may affect eligibility for Medicaid, Supplemental Security Income, and other needs-based benefits. Consult a qualified financial, tax, or legal advisor about your own circumstances. Mortgage Capital Services, LLC, NMLS #2694379 · Samantha S. Peel, NMLS #2685482 · Licensed in Georgia & South Carolina · Equal Housing Opportunity.
