What happens to a reverse mortgage when the borrowers pass?

When the last borrower on title no longer lives in the home as their primary residence the reverse mortgage comes due. If the home is sold the proceeds from the sale must be applied to the reverse mortgage first and any remaining equity belongs to the borrower or their estate. If the balance due on the reverse mortgage exceeds the value of the home, the sale of the home satisfies the reverse mortgage in full. The reverse mortgage can never be a debt to the borrower or their estate beyond the value of the home. HUD will cut loan amounts by 15% on Sept 30th. Please consider giving me a call at 1(800)486-8786 Ext. 702 for a complete report.

When none of the borrowers are remaining in the home, the loan is due. The familyor estate will sell the house and pay off the debt as with any other loan on the property.

The loan becomes due. The family can sell the home, or refinance, if there is any equity left. Most lenders allow up to 12 months to pay the loan off.

Once the last remaining borrower dies, then the estate has 12 months to sell the home and payoff the remaining balance, or the property will be foreclosed.. But there should be no reason for it to foreclose. If there's equity, then by selling the home and paying off the remaining balance, that equity now becomes an asset for the estate.. if there is more owed on the home than can be received by selling the home, then FHA will accept the proceeds from the sale as payment in full, and no one will be responsible if there is a deficit ... .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Lots of questions and answers you can find on this topic here: http://www.allrmc.com/blog/reverse-mortgage-after-death