A reverse mortgage comes due when the borrower passes. Heirs have a clock, but also clear options — and often more equity than they expect.
June 30, 2026 · about 2 min read · free
Reverse mortgages (usually HECMs) trip up a lot of heirs, because the loan becomes due and payable when the last borrower dies. That sounds alarming, but the rules give you a defined path and real choices — you just want to act promptly.
The lender will send a "due and payable" notice. As an heir you generally have an initial window (commonly 30 days to respond, with extensions often available up to a year while you arrange a sale or payoff). The balance owed is the amount borrowed plus accrued interest and fees.
The worst outcome is ignoring the notices and letting the lender foreclose while equity sits on the table. Respond to the servicer, get a current appraisal, and decide keep-vs-sell with real numbers. Because these loans are non-recourse, the family's downside is capped at the home itself. A prompt, informed response almost always beats waiting.
No — HECM reverse mortgages are non-recourse. If the balance exceeds the home's value, heirs can deed it back and owe nothing more, or buy it for 95% of appraised value.
Typically an initial 30-day response window, with extensions often available up to a year while you sell or arrange payoff. Respond to the servicer promptly to preserve those options.
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