My parents had a reverse mortgage. Now that they're gone, what happens to the house?
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.
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; the timeline is the whole game. Just call.
I wrote this answer, and I stand behind it. I'm Chris Deutsch, a Minneapolis Realtor (MN #20382264). Twenty-five years of walking these neighborhoods, checking basements, and sitting across kitchen tables from people making exactly this call. I re-check every answer and date it — this one was last verified .
If your situation is more specific than the market, that's the one worth talking through. Email me at chris@lakesarearealty.com.