When a reverse mortgage comes due, heirs face a clock

When a reverse mortgage borrower dies, the loan does not simply disappear — it becomes due and payable. For heirs, the path forward depends on whether there are co-borrowers or an eligible nonborrowing spouse. If neither exists, the estate must resolve the loan. The most common type of reverse mortgage, the Home Equity Conversion Mortgage (HECM), is federally insured and regulated, and it offers heirs specific protections that private equity products often lack. According to the Consumer Financial Protection Bureau (CFPB), once the lender issues a due and payable notice, heirs have 30 days to buy the home, sell it or turn it over to the lender to satisfy the debt. That window can be extended — potentially up to six months — so heirs can sell the property or obtain their own loan to purchase it, the CFPB added. The National Consumer Law Center (NCLC), in comments submitted to the Department of Housing and Urban Development (HUD) in December 2025, noted that heirs need “clear, prompt, and committal communication from servicers.” [Communication is needed] in order to pursue the probate steps necessary to effectuate such a transfer,” the NCLC wrote. “HUD should gather information regar...