Reverse Mortgage

What do you do with an inherited house that has a reverse mortgage in Florida?

A reverse mortgage becomes due when the last borrower dies, and the lender sets a clock. Heirs usually have a few months to sell the house, pay the loan off, or hand it over. Here is how that works and who has to sign.

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The short answer

When the last borrower on a reverse mortgage dies, the loan becomes due and payable. The servicer sends the family a letter, and the heirs generally have a limited time to choose: sell the house, pay off the loan, or give the house to the lender. For the common federally insured type, the Home Equity Conversion Mortgage (HECM), the loan is non-recourse, which means the heirs never owe more than the house is worth.

Howler Property Group LLC, a Tampa-based company that buys Florida houses directly, publishes this guide. It is general information, not legal advice, and your loan papers and the servicer's letter control.

What is the timeline after the borrower dies?

  • The servicer sends a due-and-payable notice. For a HECM, the heirs generally have about 30 days to respond with a plan.
  • The servicer can generally allow about six months to sell or pay off the loan, and can request extensions of up to a year in total in some cases from HUD.
  • Time is tight if nothing is done, because the servicer can start foreclosure once the allowed period ends. Call the servicer early and ask for the exact dates in writing.

What are the heirs' options?

  1. Sell the house. The loan is paid from the sale proceeds. If the house sells for more than the balance, the extra goes to the estate.
  2. Keep the house. The heirs pay the loan. For a HECM, an heir can generally pay the lesser of the loan balance or 95 percent of the home's appraised value, which matters when the loan is bigger than the house is worth.
  3. Deed in lieu of foreclosure. The heirs hand the house to the lender and walk away without owing the difference on a non-recourse loan.

Who can sign the sale?

The house is still titled to the person who died. The sale is signed by the estate's personal representative, the person the probate court appoints with Letters of Administration. Without that appointment, an heir generally cannot sell. Opening probate can take weeks, so start it as soon as the servicer's letter arrives. The full explanation is in can you sell a house in probate in Florida, and the inheritance basics are in selling an inherited house in Florida.

What does the servicer need to see?

  • A certified death certificate
  • Letters of Administration, or proof that a probate case is open
  • A signed contract or a written plan, which is what usually earns more time
  • A request for a payoff statement, so everyone is working from the same balance

Where does Howler Property Group fit in?

Howler Property Group buys inherited houses as-is for cash, with no repairs, clean-out or agent, and the closing can be set around the estate's paperwork and the lender's deadline. The sale still goes through the personal representative and a title company, and the loan is paid from the proceeds.

Written 2026-10-27. This page is general information, not legal or tax advice, and we are not a law firm. For your own deadlines and rights, talk to a Florida attorney.

Related questions

Good Questions

Frequently asked

What happens to a reverse mortgage when the borrower dies in Florida?
The loan becomes due and payable. The servicer sends a notice, and the heirs generally have a limited time to sell the house, pay off the loan or give the house to the lender.
How long do heirs have to respond to a reverse mortgage servicer?
For a HECM, generally about 30 days to respond with a plan and about six months to sell or pay off the loan, with extensions possible in some cases. The servicer's letter has the exact dates.
Do heirs owe more than the house is worth on a reverse mortgage?
For a federally insured HECM, no. The loan is non-recourse, so heirs do not owe more than the house is worth.
Can heirs keep a house with a reverse mortgage?
Yes, by paying the loan. On a HECM, the heirs can generally pay the lesser of the balance or 95 percent of the home's appraised value.
Who signs the sale of a house with a reverse mortgage after the owner dies?
Usually the court-appointed personal representative, whose authority is shown by Letters of Administration. Heirs generally cannot sign while the house is still titled to the person who died.
Can I sell an inherited house with a reverse mortgage before probate is finished?
Yes, once a personal representative has been appointed with authority to sell. The loan is paid from the proceeds at closing.