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  • When a Reverse Mortgage borrower dies, the Reverse Mortgage loan comes due.

    The heirs may choose how to pay off the loan. If you wish to keep the home and you have money, then you can simply pay off the Reverse Mortgage. You may also decide to try to qualify for a mortgage to purchase the home. A family member may purchase a home with a Reverse Mortgage but the Reverse Mortgage lender will need to conduct an appraisal on the property and the purchase price must meet that appraised value.

    We hope this information is helpful.

    We wish you all the best.

  • Login to rate this answer:   Answered on 12/6/2012
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  • The first step is to call the Servicing Company to let them know the last person on Title has Passed, and you're aware the Reverse Mortgage is now due and payable, and you'll like to review your options. The phone number to the Servicing Department is located on the monthly statement Grandma received from her Lender.

    If the Estate wishes to sell the house, the Granddaughter can purchase it for what's owed on the Reverse Mortgage. If Grandma owes more on the Reverse Mortgage then the value of the house, the Granddaughter can pay fair market value for it, not the entire amount Grandma owes. Since it's a family transaction, due to a death in the family, the Granddaughter should look into refinancing the Reverse Mortgage with a Traditional Mortgage (as opposed to using a "purchase" mortgage) because it'll be more cost effective.

  • Login to rate this answer:   Answered on 12/7/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.