Reverse mortgages (HECMs) surprise many families. The key is understanding the clock and moving before the lender forecloses.
This page is part of the Probate Real Estate New York guide. Not legal or tax advice — consult an estate attorney or tax professional for your situation.
The Loan Becomes Due at Death
When the last borrower passes, the balance is due. Heirs generally get an initial period (commonly around 6 months, with possible extensions) to sell, pay off, or hand back the property.
Your Options
Sell the home and pay the balance from proceeds (heirs keep any remaining equity), pay off the loan to keep the house, or, if the loan exceeds the value, complete a deed-in-lieu — HECMs are non-recourse, so you don't owe beyond the home's value.
Why Speed Matters
Interest and fees accrue and the foreclosure clock runs. A prompt listing or cash sale preserves equity. Coordinate with probate — you'll still need Letters to close.
Reverse-mortgage servicers move on a schedule. Notify the servicer, request any available extension in writing, and start the sale immediately to protect the equity.
Handling an Estate Property Sale on Long Island?
Montauk Dunes Real Estate provides compassionate, expert guidance for executors and families in Nassau County, Suffolk County, and the Hamptons — including traveling notary services for estate documents. Call for a free, confidential consultation.
Call 646-234-2160Frequently Asked Questions
How long do heirs have to sell a reverse-mortgage home?
Often about 6 months from death, sometimes extendable — confirm with the servicer promptly.
What if the loan is more than the house is worth?
HECMs are non-recourse; heirs can walk away via deed-in-lieu and owe nothing beyond the property.
Can I sell before probate to beat the deadline?
You can market and accept an offer, but closing needs Letters. See selling before probate.