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My Dad just passed away recently with a reverse mortgage. I understand how the reverse loans works, by basically putting the house up as collateral, and receiving an amount based on the home's equity (if that's explained correctly). Essentially, the estate loses the house if it can't pay the reverse mortgage.

The problem I had was finding out what happens after the home owner dies:

  1. How quickly does his death need to be reported?

  2. Are there any guidelines that explain how long the provider has to give the estate to clear out the house (if the reverse mortgage can't be paid)?

Are any of those questions provider specific? I'm in the United States.

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    I am not aware of a situation where the reverse mortgage is handled differently than any other debt held by the estate. It is secured debt with the home as collateral, which must be cleared by the estate on death. The terms of the equity payments to your father were what made it a 'reverse mortgage', but as a debt in the estate I don't think there is any special treatment.
    – jkuz
    Mar 28, 2016 at 18:58
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    @jkuz I understand how the reverse mortgage part works, but not the specifics of after someone dies. As I mentioned in my question, all I need to know is once the home owner dies, how quickly does his death need to be reported to them, and when reported, are there any limits on how long we would have to clear out the house. Because I don't want a situation where I'm given 24 hours to clear out a house that will take a few days to clean up.
    – dakre18
    Mar 28, 2016 at 19:10
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    The loan will be due to be paid in full. It sounds like you just want to sell the house and keep the equity balance. Your question was just unclear to me. There should be a window of time for this, but I am not familiar enough to post a full answer. They will get notice of death, so don't hold back communications.
    – jkuz
    Mar 28, 2016 at 20:10
  • @jkuz I formatted it differently, does that help the questions stick out better?
    – dakre18
    Mar 28, 2016 at 20:54

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This page says that heirs have six months to clear the debt one way or the other.

Heirs get an initial six months to deal with the loan payoff. And it's to their advantage to move as quickly as possible. Until the loan is settled, interest on the balance and monthly insurance premiums will continue to eat into any remaining equity.

This site also gives the six month number:

Your heirs will work closely with the Servicer to ensure the loan is paid in full in a timely manner. While payment is due immediately, the heirs have six months to satisfy the debt. If they are selling the property and it is still on the market after six months, the heirs can contact the Loan Servicer and request a 90-day extension, subject to approval by HUD. One additional 90-day extension can be requested, again with HUD's approval.

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