Once all borrowers on the reverse mortgage loan have passed away (or moved out of the home), the reverse mortgage loan will become due. If you are an heir to a deceased reverse mortgage loan borrower, what are your options?
Let me preface this by saying that the lender/bank does not automatically get the home. They do not own the home, take title to the home or own the equity the home has in it. As an heir, it is your responsibility to determine what happens next.
The first thing you should do is contact the reverse mortgage loan servicer to inform them that your loved one has passed away. It is important to maintain contact with the servicer throughout the process. This is especially important if you want to sell the home, as you have 6 months to do so. If you have been in regular contact with the servicer, they can request two additional 90 day extensions from HUD, doubling your time-frame.
If you do not wish to keep the home, your options are as follows:
If you want to keep the home, you can do one of the following:
If you’d like more information, please call us. We are happy to answer any questions you have. 855-469-7383
Laura Funderburk is a highly sought after reverse mortgage loan specialist in Dallas, Texas. She has focused on this specialty loan for many years and stays up-to-date on the latest trends and changes. She is known for helping retirees supplement their retirement income using a reverse mortgage loan without being pushy or overbearing.
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