Who keeps the equity on the reverse mortgage after death?

I'll let someone that handles that type mortgage respond officially, but the bottom line is that if there is any money left over after paying off the balance on the reverse mortgage and any associated fees and expenses, any balance will go the heirs.

If there is equity after the reverse mortgage is paid off, it goes to the heirs of the deceased borrower. I am a reverse mortgage specialist, and you can contact me for more information at 503-620-2239.

Hi Geraldine! There should be planning involved for this type of transaction that goes beyond a typical real estate closing. A Will and other Legal Documents should be prepared to determine how the property will be handled upon any event, including death of the borrower's. If there is equity, the only way to receive the equity would be through the sale of real estate and making sure the sale can happen shortly after the last surviving borrower leaves the home in one way or another, will ensure for a smooth transition. I'd suggest you speak to an Elder Law Attorney who specializes in these types of transactions. Visit the link that I am providing for a search of those who can help you locally (National Academy of Elder Law Attorneys). Good Luck! http://www.naela.org/Public/About/For_More_Information/Find_an_Elder_Lawyer/Public/About_NAELA/Public_or_Consumer/Find_an_Elder_Lawyer/Find_an_Elder_Lawyer.aspx?hkey=01d28480-72a3-4294-8d32-554931fc26b4

The equity belongs to the estate of the deceased.. if there is a will, then it goes to the heirs. The balance on the mortgage would have to be satisfied in order to get a release from the lien holder, but this can be done upon sale. RM's have a lenient time frame which you must pay the balance owed, so you can pay cash, sell the property or refinance it.. they will most likely work with you.. 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