Navigating Reverse Mortgages In Probate
Last updated on October 31, 2025
Older homeowners often use reverse mortgages, allowing them to take out a loan against their home equity based on appraisals and fair market value. Reverse mortgages require no monthly payments, as with a traditional mortgage. Instead, the balance of the loan must be paid if they sell or after they pass away. This can significantly impact heirs and beneficiaries during probate.
When addressing reverse mortgages in probate, it can help to work with an experienced law firm like Korshak & Associates, P.A. Our attorneys have over 65 combined years of experience with estate administration and probate, tracing our roots back to 1981. From offices in Casselberry and Winter Park, we offer Spanish language services and skilled legal guidance. Call to schedule a consultation.
What Happens To A Reverse Mortgage When The Borrower Passes Away?
When the borrower passes, the reverse mortgage comes due. Heirs will receive a notice telling them when they have to pay off the balance.
This can create some potential issues. For instance, maybe the heirs want to keep the house. If so, they must pay off the loan balance. This satisfies the conditions of the reverse mortgage, and they then own the home outright. They may only have 30 days to do so.
Heirs may not have the financial resources to immediately pay off the loan. In many cases, they get an appraisal and then sell the house. The money from the sale is used to pay off the rest of the loan. If the house sells for more than the balance that was due, the heirs can even earn money, as they get to keep the remaining portion.
That said, heirs who believed they stood to inherit the home outright may be surprised to get a due and payable notice during estate administration. This is why communication is very important so that they understand what obligations they may inherit.
Call Now For A Consultation
Probate court issues are complex, but our experienced Florida lawyers are here to help. Call 888-681-4389 or use the online contact form to schedule a consultation. Se habla español.