My parents had a reverse mortgage. Now that they're gone, what happens to the house?
Answered by Chris Deutsch, Founder & Editor
Licensed Minnesota Realtor #20382264 ·
The short answer
The loan comes due — but you have options and some time, and the key is engaging fast. After the last borrower dies, the servicer sends a due-and-payable notice. Heirs generally get an initial window measured in months, with extensions available while you're actively working toward a sale or payoff. Silence is what costs heirs. Deadlines harden when nobody responds.
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The longer answer
Three doors. Sell the house, pay off the loan from the proceeds, and keep whatever equity remains. Pay it off another way and keep the home. Or, if the balance has grown past the home's value, federally insured reverse mortgages let heirs satisfy the debt for 95 percent of the current appraised value — you're not personally responsible for the gap.
Keep every servicer letter and start the value conversation early. An attorney should confirm the exact deadlines and your heir rights — I'm not a lawyer, and this isn't legal advice. I've sold these; staying ahead of that timeline is what protects you. Just call.
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