What happens to condo associations & reverse mortgages when a borrower dies?

Typically the estate will still be responsible for the home owners association fees until the property is sold. As far as the reverse is concerned the condo will need to be refinanced out of the reverse or sold.

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If the person responsible for a RM passes, then the estate would be responsible for association fees, property taxes and home owners insurance.. The estate or heirs would not be responsible for the outstanding mortgage.. If there's equity, then it can be sold and the gain would revert to the estate.. if the property is not worth what the outstanding balance would be, then you can hand the key's over to FHA and the estate would not be responsible for any deficit.. but the estate would be responsible for any outstanding taxes and association fees up till the date the property is transferred.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

If there is little or no equity left when the borrower dies, the lender will cover HOA fees, as well as pay off the loan, at no cost to the estate. This is a benefit of the FHA insurance.