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.
Published: Oct 9, 2022
Updated: Oct 9, 2022
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.