All Forum Posts by: Carla Jones

@Carla Jones my firm specializes in reverse mortgage/probate situations. Feel free to reach out if you have any questions or need a connection

The executor of the estate is responsible for resolving the affairs of the deceased. If there is equity in the home it can be sold, the mortgage satisfied and the remaining funds accrue to the estate. If the accrual of interest on the Reverse Mortgage used up all or most of the equity in the home, or if there is negative equity, the lender should be notified and you await further instructions. If it is a negative equity situation there is no recourse to the estate. FHA may allow a shot sale of the property. Reverse Mortgages are not assumable as suggested by a earlier writer.

Reverse Mortgages are like any other mortgage on a property. If the owner passes away, the asset becomes property of the estate. The person who is responsible for the estate will need to obtain new financing or sell the house to pay off the reverse mortgage. Most reverse mortgages are FHA mortgages so they are assumable but the person would be subject to the same requirements - namely being over the age of 62 and living in the residence for more than 6 months out of the year.