Probate Knowledge Center

Reverse Mortgages

Selling a home with a reverse mortgage or HECM balance.

• What happens to a reverse mortgage when the owner dies?The reverse mortgage becomes due when the last borrower dies. Heirs typically sell the home to pay it off and keep any remaining equity.
• How long do heirs have to sell a home with a reverse mortgage?Servicers generally allow about six months after the borrower’s death, with possible extensions while a sale is actively in progress.
• Can I keep the home instead of selling if it has a reverse mortgage?Yes, if you can pay off the balance, often by refinancing. Heirs can also buy a HECM home for 95 percent of appraised value when the loan exceeds it.