For the family

For Heirs and Family

If someone you love had a reverse mortgage, you may be facing decisions at a tender time. My goal here is simple. I want to explain, in plain and unhurried language, what happens next and what choices you have, so the path forward feels clear rather than overwhelming.

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A happy multigenerational family together on the sofa at home

What triggers the decision

When the loan becomes due

A reverse mortgage becomes due when the last borrower passes away or permanently moves out of the home, for example into long term care. At that point the loan balance, which has grown over time as interest and fees were added, needs to be repaid. This is a normal, expected part of how these loans work, and it does not mean anyone did anything wrong.

Here is the reassurance most families need first. A federally insured reverse mortgage, known as a HECM, is a non-recourse loan. That means neither you nor the estate can ever owe more than the home is worth at the time of repayment. If the balance is higher than the value, the insurance covers the difference, not the family.

You are in control

Your options as an heir

You generally have three clear choices. None of them is a trap, and you can take the one that fits your family and your circumstances best.

Keep the home

If you want to hold on to the property, you can pay off the loan balance or about 95 percent of the appraised value, whichever is less. Many families do this by refinancing into a traditional mortgage in their own name. Keeping the home is often the right choice when there is meaningful equity or deep sentimental value.

Sell the home

You can sell the property, use the proceeds to pay off the loan balance, and keep any remaining equity for the family. Because the home is often worth more than the balance, selling frequently leaves money in your pocket. This is the most common path, and it is the one I can guide you through from start to finish.

Deed in lieu, walk away

If the home is worth less than the balance, or you simply do not wish to keep or sell it, you can sign a deed in lieu of foreclosure and hand the property back to the lender. Because the loan is non-recourse, you walk away with no personal liability. Your other assets and your credit stay protected.

What to expect

The typical timeline

Once the loan becomes due, you generally have about six months to decide and act, and extensions of additional time are often available when you are making a genuine effort to sell or refinance. The single most important thing you can do is stay in regular contact with the loan servicer. As long as they can see that progress is being made, they are usually willing to work with you.

You are not being rushed toward foreclosure. The timeline exists to give families room to make a thoughtful decision, and communication is what keeps that room open.

Where to begin

First steps to take

If you are not sure what to do first, start here. These four steps put you back in control quickly.

1

Contact the loan servicer

The servicer is the company that manages the loan. Let them know about the change in circumstances and ask what they need from you. Opening that line of communication early keeps every option available.

2

Request the payoff amount

Ask the servicer for the current loan balance, also called the payoff amount. This is the number you will weigh against the value of the home when you compare your choices.

3

Get a valuation of the home

Find out what the property is worth in today's market. Comparing the value to the payoff amount is what tells you whether there is equity to keep, whether selling makes sense, or whether walking away is the kinder choice.

4

Talk with me

Once you know the balance and the value, a short conversation can bring the whole picture into focus. I am glad to walk you through what each option would look like for your family, with no pressure and no cost.

You do not have to do this alone

How I help

As an Arizona real estate professional, I have sat beside many families in exactly this position. My role is to make the practical parts easier so you can focus on one another.

Valuation

I provide a clear, honest assessment of what the home is worth in the current Arizona market, so your decision rests on real numbers.

Selling

If you choose to sell, I manage the listing, the showings, and the sale with care, working to protect the equity the family has earned.

Coordinating the payoff

I help coordinate with the servicer and the closing so the loan is paid off cleanly and any remaining proceeds reach the family without confusion.