Question 1

My parent has a reverse mortgage — will I inherit their debt?

Accepted Answer

No. The HECM (the FHA-insured reverse mortgage) is a non-recourse loan, which means neither you nor the estate can ever owe more than the home is worth when the loan is repaid. If the loan balance is higher than the home's value, FHA insurance covers the difference — not the heirs.

Question 2

What are my options when I inherit a home with a reverse mortgage?

Accepted Answer

As an heir, you generally have three choices: Keep the home — repay the loan balance, or 95% of the current appraised value if the balance is higher, typically by refinancing or paying it off. Sell the home — pay off the loan from the sale and keep any remaining equity. Walk away — sign the home over to the lender (a deed in lieu of foreclosure) with no further obligation, thanks to the non-recourse protection. You are never forced to keep the home or to pay out of pocket beyond the home itself.

Question 3

How much time do heirs have after the borrower passes away?

Accepted Answer

Heirs typically have an initial 6 months to repay or sell, and can usually request two 90-day extensions if they are actively working to sell or finance the home — up to about a year total. Staying in communication with the loan servicer is what keeps those extensions available.

Question 4

Will a reverse mortgage take away my inheritance?

Accepted Answer

It reduces the home equity portion of an estate over time, but it does not erase your inheritance. Many families find the trade-off worthwhile: the loan lets a parent stay in their home, cover care or living costs, and avoid leaning on their children financially. Any equity remaining after the loan is repaid still passes to the heirs.

Question 5

Can I speak with the lender or servicer on my parent's behalf?

Accepted Answer

Only if your parent has authorized it — for example, by adding you as an authorized third-party contact, or through a power of attorney. It is worth setting this up early, while your parent is able to, so you can help manage the loan smoothly if the need arises.

Question 6

My parent is moving to assisted living — what happens to the loan?

Accepted Answer

A reverse mortgage becomes due when the home is no longer the borrower's primary residence for more than 12 consecutive months, which includes a long-term move to assisted living or a nursing facility. At that point the family chooses among the same options as above: repay and keep, sell, or hand the home back. A non-borrowing spouse still living in the home may be able to remain under specific protections.