My parents have a reverse mortgage. What happens when they sell?

The fuller picture: a reverse mortgage comes due when the last borrower sells or permanently leaves the home — and a permanent move to a care community typically triggers it, usually after twelve months away. At closing, the payoff comes out of the proceeds like any mortgage would. And these loans are non-recourse: if the balance has grown past the home's value, the house settles the debt and nobody inherits the shortfall. The lender cannot reach the rest of the estate.

Two practical moves: request the payoff statement early, since reverse-mortgage servicers can be slow, and loop in the loan servicer the moment a permanent move looks likely — silence is what creates problems. Have an attorney or HUD counselor confirm the specifics of their loan; I'm not a lawyer. The sale mechanics, though — that part I've done plenty of times.