What Happens When Someone Dies With a Reverse Mortgage?

If you have a reverse mortgage and die, your heirs will still inherit your home, but the reverse mortgage must be repaid by either the estate or the heirs in full to avoid foreclosure.

To repay the reverse mortgage, the estate or heirs can:

  • Sell the home and pay off the mortgage, which allows the heirs to keep any remaining equity from the sale, or

  • Pay off the loan balance and keep the property.

The lender may foreclose on the property if the estate or heirs does not have enough money to repay the loan. However, the heirs are entitled to any remaining equity after the foreclosure, which is the difference between the amount owed and the property sold.

See this article about the myths of reverse mortgages in probate.

Published: Oct 9, 2022

Updated: Jul 12, 2023

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This FAQ is for informational purposes only and does not constitute legal advice. We make no representations or warranties about this FAQ's completeness, accuracy, reliability, or suitability. Each legal situation is unique. Always consult an attorney for personalized guidance.

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