How does a reverse mortgage work when you die?

Home Forums Mortgage How does a reverse mortgage work when you die?

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    Jordan Moore
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    Jordan Moore
    Keymaster

    If a borrower dies while the property is still on reverse mortgage, the debt becomes payable immediately if your heir(s) want to keep the property. However, if there is a co-borrower or a non-borrowing spouse, then they continue to enjoy the benefits of the reverse mortgage. 

    Otherwise, the heirs get 30 days from the notice period date to either buy, sell, or hand the property over to the lender. The lender may agree to extend the timeline if the heirs plan to sell the house or want to get financing for the mortgage balance to retain the home.

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