What Happens When Someone Passes Away 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: Dec 26, 2023

Read more FAQ...

Who Determines the Necessity of Probate?


When Are Beneficiaries Notified Following a Death?


What Strategies Exist for Avoiding Probate?


What Steps Should Be Taken When Inheriting an Unpaid House?

Disclaimer section
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.

Our Practice Areas

Our talented and experienced attorneys and team members come from diverse backgrounds, but we share a common belief in doing right by those that entrust us with their legal matters. At Easler Law, we bring real-world experience to the table, we will critically think for you, we will do the work right, and we will never make excuses.

Search among the most frequently asked questions

Learn More About Our Legal Services

Benifical Ownership Report

Under the Corporate Transparency Act (CTA), businesses must report ownership info to combat financial crimes or face penalties.

Learn More