Florida Reverse Mortgage
owner is deceased
Answer by Iffy
You pay the outstanding balance immediately
Answer by gardenoflia
That’s what happens with reverse mortgages. Residence goes to the lender when owner dies (last owner). Really should not happen if spouse is still alive. Or pay off loan in full as other individual suggests.
Related Mortgage Info
When the last borrower/owner on a reverse mortgage dies, the heirs inherit the house. Are you an heir? If the amount owed is more than the value of the home, many heirs just let it default to the lender since the most they can owe is the value of the house, and they don’t actually owe the money anyway. You only inherit the house, not them mortgage. The lender can’t go after any other parts of the estate. If there’s nothing left for them it’s easier for them to let it go.
If you are an heir, you may still be able to redeem the house by paying off the mortgage. If you’re someone who wants to buy the house, you have to wait until the lender is ready to sell it.
If the owner is deceased the estate needs to repay the loan. If there is a deficency after the foreclosure the estate would have to pay that too.
A probate proceeding will immediately stop the foreclosure process. If you havent yet filed the necessary documents you should do so immediately.