--- title: "Reverse Mortgage Heirs Guide: What Happens After Death" description: "What heirs need to know when a reverse mortgage borrower passes away — the 95% rule, timelines, non-recourse protection, and your options." lang: en json-ld: | [ { "@context": "https://schema.org", "@type": "WebSite", "name": "HECMAcademy", "url": "https://hecmacademy.com", "description": "Independent, plain-English reverse mortgage education for U.S. homeowners age 62 and older. Explains HECM eligibility, costs, protections, and payout options without sales pressure.", "potentialAction": { "@type": "SearchAction", "target": { "@type": "EntryPoint", "urlTemplate": "https://hecmacademy.com/?q={search_term_string}" }, "query-input": "required name=search_term_string" } }, { "@context": "https://schema.org", "@type": "Organization", "name": "HECMAcademy", "url": "https://hecmacademy.com", "logo": "https://hecmacademy.com/og-card.png", "description": "Independent, plain-English reverse mortgage education for U.S. homeowners age 62 and older. Explains HECM eligibility, costs, protections, and payout options without sales pressure." }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://hecmacademy.com" }, { "@type": "ListItem", "position": 2, "name": "Heirs Guide", "item": "https://hecmacademy.com/heirs-guide" } ] }, { "@context": "https://schema.org", "@type": "Article", "headline": "Reverse Mortgage Heirs Guide: What Happens After Death", "description": "Plain-English guide for heirs handling a HECM reverse mortgage after the borrower passes away.", "author": { "@type": "Organization", "name": "HECMAcademy" }, "publisher": { "@type": "Organization", "name": "HECMAcademy" }, "datePublished": "2026-06-09", "mainEntityOfPage": "https://hecmacademy.com/heirs-guide" }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "How does a reverse mortgage work when you die?", "acceptedAnswer": { "@type": "Answer", "text": "When the last surviving borrower dies, the HECM becomes due and payable. Heirs typically have 30 days to notify the servicer of their intent, and up to 12 months (with extensions) to sell the home, refinance into a traditional mortgage, pay the balance, or sign a deed-in-lieu. Because HECMs are non-recourse, heirs never owe more than the home is worth." } }, { "@type": "Question", "name": "What is the 95% rule for heirs?", "acceptedAnswer": { "@type": "Answer", "text": "If heirs want to keep the home and the loan balance exceeds the home's value, they can satisfy the HECM by paying 95% of the current appraised value. FHA insurance covers the shortfall to the lender." } }, { "@type": "Question", "name": "Can heirs inherit reverse mortgage debt?", "acceptedAnswer": { "@type": "Answer", "text": "No. HECMs are federally insured non-recourse loans. The home secures the debt — heirs are never personally liable, and other assets in the estate cannot be pursued to cover a shortfall." } } ] } ] --- Free HECM guidance — no sales pressure Mon–Fri, 9am–6pm ET [Contact](/contact) [![HECMAcademy — reverse mortgage education](/__l5e/assets-v1/11c6d22b-7f84-4add-8068-34dad2c8a5b7/hecmacademy-logo.png)](/) [How it works](/#how) Learn [Free Guide](/guide)[FAQ](/faq)[Blog](/blog)[Retirement Tax Guide](/retirement-tax-guide)[Heirs Guide](/heirs-guide) By State [California](/reverse-mortgage/california)[Texas](/reverse-mortgage/texas)[Florida](/reverse-mortgage/florida)[Arizona](/reverse-mortgage/arizona)[Colorado](/reverse-mortgage/colorado)[Virginia](/reverse-mortgage/virginia)[Utah](/reverse-mortgage/utah)[Washington](/reverse-mortgage/washington)[Ohio](/reverse-mortgage/ohio)[Illinois](/reverse-mortgage/illinois)[Maryland](/reverse-mortgage/maryland)[North Carolina](/reverse-mortgage/north-carolina)[Oregon](/reverse-mortgage/oregon)[Hawaii](/reverse-mortgage/hawaii) [All states →](/reverse-mortgage) [Calculator](/calculator)[About](/about) [Expert advisor (888) 203-8887 Mon–Fri, 9am–6pm ET ](tel:+18882038887)[Check Eligibility](/#quickcheck) [](tel:+18882038887)[Check Eligibility](/#quickcheck) Family Resources # Reverse Mortgage Heirs Guide: What Happens After Death A plain-English walkthrough for family members handling a HECM after a parent or spouse passes away — timelines, the 95% rule, and the federal protections that keep you from inheriting debt. ## The short answer A Home Equity Conversion Mortgage (HECM) becomes **due and payable** when the last surviving borrower dies. Heirs have four options: sell the home, refinance into a traditional mortgage, pay off the balance, or sign a deed-in-lieu of foreclosure. The loan is **non-recourse**, so heirs never owe more than the home is worth — even if the balance exceeds market value. ## The timeline at a glance - **Within 30 days of death:** Notify the loan servicer. They mail a "Due and Payable" letter explaining your options. - **Within 6 months:** Decide on an option (sell, refinance, pay off, or deed-in-lieu) and begin acting on it. - **Two 90-day extensions:** If actively marketing the home or arranging financing, you can request up to two 90-day extensions — extending the total window to 12 months. ## The 95% rule, explained If heirs want to **keep the home** and the HECM balance is higher than the home's current value, HUD lets them satisfy the loan by paying **95% of the current appraised value**. FHA mortgage insurance covers the difference between that payment and the actual loan balance. ## Non-recourse protection - The home is the only collateral. - Heirs are never personally liable for a shortfall. - Other estate assets (savings, investments, other property) cannot be pursued to make up a deficit. - If the home sells for less than the balance, FHA insurance pays the lender the difference. ## What if heirs want to sell? List the home as you normally would. At closing, the HECM is paid off from the sale proceeds. Any remaining equity belongs to the estate. ## What if heirs want to keep the home? Heirs can pay the loan off with cash, refinance into a traditional mortgage in their own name, or — if the home is worth less than the balance — invoke the 95% rule. ## Common pitfalls to avoid - **Ignoring servicer mail.** Missed deadlines are the most common reason families lose flexibility. - **Assuming you owe the debt personally.** You don't. The non-recourse rule is statutory. - **Letting the home deteriorate.** Hazard insurance and property taxes must stay current during the resolution window. ## Where to get help Start with the loan servicer (their number is on every monthly statement). For independent guidance, contact a [HUD-approved housing counselor](https://entp.hud.gov/idis/q1.cfm) — counseling is low-cost or free and not tied to any lender. ### Planning ahead? If you're a borrower (not an heir) reviewing your HECM options, our [homepage](/) explains HECM-to-HECM refinances and jumbo proprietary alternatives. Our [retirement tax guide](/retirement-tax-guide) covers how each state treats retirement income. Reviewed by the HECMAcademy Editorial Team · Last updated June 2026 · [How we vet this content](/about#editorial-standards) ## Get the Free HECM Guide (PDF) An 8-page plain-English guide to how the FHA HECM works — sent straight to your inbox. 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Learn - [Blog](/blog) - [FAQ](/faq) - [Free HECM Guide](/guide) - [Heirs Guide](/heirs-guide) - [Retirement Tax Guide](/retirement-tax-guide) By State - [california](/reverse-mortgage/california) - [texas](/reverse-mortgage/texas) - [florida](/reverse-mortgage/florida) - [arizona](/reverse-mortgage/arizona) - [colorado](/reverse-mortgage/colorado) - [virginia](/reverse-mortgage/virginia) - [utah](/reverse-mortgage/utah) - [washington](/reverse-mortgage/washington) - [ohio](/reverse-mortgage/ohio) - [illinois](/reverse-mortgage/illinois) - [maryland](/reverse-mortgage/maryland) - [north carolina](/reverse-mortgage/north-carolina) - [oregon](/reverse-mortgage/oregon) - [hawaii](/reverse-mortgage/hawaii) [About](/about)[Contact](/contact)[Privacy](/privacy-policy)[Terms](/terms)[(888) 203-8887](tel:+18882038887) © 2026 HECMAcademy. All information is educational and not a loan commitment. HECM borrowers must remain current on property taxes, insurance, and maintenance. 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