my father took a reverse mortgage out on his beach house in Oregon when he passes can my siblings and I keep the house do we have to pay off the loan does he have to leave it to us in his will..or do we have to sell the house can we keep the difference ...

Hi- a reverse mortgage is just like a traditional "forward" mortgage in several ways. It is a lien against the property. Once he passes, you will contact the servicer of the loan and get the pay off- then you can refi and pay it off. I would strongly suggest that all of you kids and your dad talk with a estate planner attorney and set up a trust so you will not be hit with high capital gains.Please let me know if you have any other questions- I am located in Eugene OR, my name is Helen Davidson Williams and my phone is 541-341-1400 x 3104.

As Helen stated, it's a mortgage and yes, it would have to be paid off either through the sale of the property or by one of you purchasing the home or refinancing (if you are already on the deed.)Reverse Mortgages are non-recourse loans so the balance owed can never exceed what the home is worth.

Hi - I suggest you get a copy of the reverse mortgage contract and meet with a financial advisor or attorney who understands complex financial contracts to find out the consequences of this reverse mortgage for your father, you and your siblings. It's important to understand how much money is owed on the home and how much the home is worth. Then you will know if it is possible to pay for you to refinance, pay off the loan to keep the house or if you will be forced to sell if you can't afford to pay off the loan. Reverse mortgages are very expensive and eat up equity quickly with compound interest. It's better to know where you stand sooner rather than at a time when you are grieving the loss of your father.

You would need to purchase it from his estate and pay off the reverse mortgage.