Michael G. Branson, CEO of All Reverse Mortgage, Inc., and moderator of ARLO™, has 45 years of experience in mortgage banking, with the past 20 years devoted exclusively to reverse mortgages. A Forbes Real Estate Council member, he developed the industry's first fixed-rate jumbo reverse mortgage and has been featured in Forbes, Kiplinger, the LA Times, and Yahoo Finance. (License: NMLS# 14040)

Cliff Auerswald, President of All Reverse Mortgage, Inc., and co-creator of ARLO™ — the industry's first real-time reverse mortgage pricing engine — has 27 years of experience in mortgage banking, with 20+ years focused exclusively on reverse mortgages. A recognized expert in reverse mortgage technology and consumer education, he has been featured in Kiplinger, Yahoo Finance, Realtor.com, and HousingWire. (License: NMLS# 14041)

Timeframe to Vacate Home After Reverse Mortgage

By Michael G. Branson

CEO · 45 yrs in mortgage banking

Edited By Cliff Auerswald

President · All Reverse Mortgage Inc.

Updated Aug 19, 2023 ⏱ 6 min read ✓ Fact Checked HUD-Lender #26031-0007 85 comments

Hello ARLO, My father passed away in October 2018. He had a live-in caretaker for several years. I decided to sell the house in California, while the caretaker is occupying the home to keep the property safe and away from squatters and facilitate the viewing. One offer from a buyer fell through, and the caretaker approached my agent wanting to put in an offer Celink has been working on the short sale approval on his offer for 2 months, with very little communication and feedback. The appraisal from the lender was already done in September and is supposedly waiting for HUD/Owner approval. Meanwhile, the trustee sale is scheduled for January 3rd, 2020. This past Friday, Celink said that the “client,” whom I assume is HUD or whoever bought the note, that IF the sale/escrow can be completed by December 30th, 2019, they are ok with approving. Being a holiday month, it is unlikely that the buyer/caretaker will be able to open escrow and close by December 30th. If the property is sold at auction on January 3rd. How much time must the buyer (who has been a long-time resident) vacate the home? He wants to make sure that he will have enough time to find another place to live and take his personal property acquired over the years. He is also a senior with mobility challenges. If it forecloses on the 3rd, what is the time frame for him to vacate? Also, if no one bids on the trustee sale, does he have a longer time period to move out? He is apprehensive that if his escrow is delayed, he will have even less time to find something suitable. Would Celink postpone the trustee sale beyond the 3rd? Thank you, -Emmy

Hello Emmy,

Regarding the timeframes and rights of a third party vacating the property, you would need to consult with an attorney in the area if the reverse mortgage ends in a foreclosure sale.

That would be a legal issue separate from the reverse mortgage, and many factors can play a role in eviction that I cannot answer for you. But about the timing of the foreclosure sale, the lender can postpone a foreclosure sale if they choose.

Celink is the lender’s/HUD’s servicer, acting on the lender’s behalf; they would not make that decision independently. That is why there are delays at times. They do need to obtain approvals for specific actions.

But suppose the buyer is close to closing at the end of the month. In that case, he should communicate with Celink. While I cannot commit anything to them, I am pretty confident they would be willing to grant a small extension to allow the loan to close.

It would be an excellent idea for him to give Celink regular updates as the loan progresses so there is no question of his intent or ability to qualify. You need to remember that a suitable lender CAN close a loan between now and December 30th if the borrower qualifies (it is a tight timeframe with the holidays, but it is possible).

If the loan is approved and just a day or two away from closing at the end of the month, their priority is repaying the loan, which is what they would push for.

If, however, they do not see a close date in sight (you get to December 30th, 2019, and there is no loan approval yet), the lender or HUD must decide whether to wait for a close (that may never come) or proceed with the foreclosure.

Remember, it’s already been over a year since the borrower left the home. HUD is still incurring losses on the loan since interest continues to accrue, and sooner or later, they must cut their losses.

If the caretaker is purchasing the property, he must work diligently on closing the loan. If he thinks he cannot close a loan to purchase, he should be making that assessment now.

I do not know what the law will allow for eviction times after the foreclosure is completed if he waits until then to move. Still, I am aware that there is no stated forbearance period for occupants of properties once a lender has foreclosed. The Trustee’s Deed has granted title to the lender.

Unless there is some legal reason to extend the time, things will move quickly from that point. Again, your best option is to consult an attorney for legal advice to ensure the laws and rights in this case.

Loan Maturity FAQs

What happens when the reverse mortgage owner dies?

The heirs have the option to pay off the loan (at the lower of the amount owed or 95% of the current market value of the home) and keep the home, sell the home, and keep the proceeds or let the lender take the home and owe nothing to the lender.

Can heirs walk away from reverse mortgages?

Yes, heirs can walk away from a reverse mortgaged home. The loan is non-recourse, meaning the lender’s only security is the property. We encourage all heirs to compare the balance owed on the borrowers’ most recent statement to the probable value expressed by a local real estate professional to ensure they are staying within equity that belongs to them or their family’s estate.

Can you buy back a house that has a reverse mortgage?

You do not need to repurchase the home. The reverse mortgage is a loan just like any other loan. The loan may be repaid at any time without penalty, and the home remains the property of the owner or their heirs.

How long does it take to foreclose on a house with a reverse mortgage?

The foreclosure timeframe for a reverse mortgage is the same once the Notice of Default has been filed, as with any other loan as prescribed by local laws. The actual time it takes depends on the state where the property is located. However, it can take as little as 150 – 180 days in a Trust Deed state from filing to over a year in a judicial foreclosure state that must go through a court foreclosure. Any individual, borrowers, or their heirs facing a foreclosure action should seek legal assistance to determine the foreclosure laws in their area and their rights and obligations under the law.

How long can a caretaker stay after the owner dies with a reverse mortgage?

This is a tricky question to answer. If the owner has heirs who want to sell the home or move in, they could begin an eviction process almost immediately. Then it would be up to the individual laws in your area to determine your rights to remain before you must vacate. If no heirs come forward to claim the property, the lender would only be able to remove an individual from the property once they owned the home, and that could only be completed after a foreclosure action which could take 5 months or longer. At any rate, you need to realize that, eventually, there will be a new owner. Unless they keep the home as a rental and you can decide with the new owner to continue to rent from them, you will need to move. Let’s start planning for that eventuality early on.

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85 Comments on this Article

Rocco G.
April 20th, 2025

If I receive a lump sum payment for my paid-off home through a reverse mortgage, can I just leave the house to the lender automatically?
Reply to Rocco
- Michael Branson
  April 20th, 2025
  
  Hello Rocco,
  With a reverse mortgage, you can remain in your home for the rest of your life without making any monthly mortgage payments - as long as you continue to pay your property taxes and homeowner's insurance and keep the home in good condition.
  When the time comes that you either pass away or can no longer live in the home due to health or other reasons, the lender will contact you or your heirs to discuss the payoff options. At that point, one of three things can happen:
  Keep the home - You or your heirs can pay off the loan balance and retain ownership.
  Sell the home - The property can be sold, and any remaining equity belongs to you or your heirs.
  Walk away - If the home is worth less than the loan balance, you or your heirs can choose not to sell it. In that case, the lender will take ownership, and no one owes anything further thanks to the FHA's non-recourse protection.
  The choice is entirely yours (or your heirs'). However, I always recommend speaking with a senior-focused real estate agent to get a sense of your home's value. A knowledgeable agent can handle the entire sale process, ensuring that if there is equity, your estate or heirs receive those funds. And if there's no equity? There's still no cost or obligation - your family can simply walk away, and the lender absorbs the loss.
  Reply to Michael
Robert G.
February 12th, 2025

I'm the oldest son, and I lived with and took care of my 93-year-old mother in her home, which had a reverse mortgage. My mother recently passed away and named my sister as the executor of her will. Supposedly, my mother and sister completed a quitclaim deed six months before her passing, and now my sister is telling me I have 30 days to vacate the home. What legal options, if any, do I have to get more time to relocate?
Reply to Robert
- Michael Branson
  February 12th, 2025
  
  Hello Robert,
  I'm sorry to hear about your situation. Unfortunately, this matter is not governed by any provisions in the reverse mortgage, so we are unable to provide guidance on it. This is not an issue related to the reverse mortgage itself but rather your legal rights as an occupant of the property. Since this is a legal matter, you should consult with an attorney to understand your rights.
  If hiring an attorney is financially difficult, you may want to explore legal aid services, which are often free or subsidized based on income. It's unfortunate that you and your sister cannot reach an agreement that works for both of you, but if necessary, you should be fully informed about your legal rights. The laws regarding occupancy rights vary by state, so speaking with a local attorney who understands your state's regulations is the best course of action.
  I hope you and your sister can find a resolution before it escalates further.
  Reply to Michael
Charles
September 14th, 2024

What procedures are followed to remove household furniture after a default in a reverse mortgage?
Reply to Charles
- Michael Branson
  September 14th, 2024
  
  Hello Charles,
  Lenders must wait until a property goes through a complete foreclosure before they can even enter the premises. Once the lender takes possession of the home, after completing the foreclosure, evicting any remaining occupants (if any), and adhering to any waiting periods, they must then follow the state or county foreclosure laws regarding the removal and disposal of personal property. You can search online for the specific laws in your area.
  Let me know if any other details are needed!
  Reply to Michael
Lisa
September 3rd, 2024

Is rent required with a reverse mortgage?
Reply to Lisa
- Michael Branson
  September 3rd, 2024
  
  Hello Lisa,
  No, there is no rent required. You own the home, and while you have the loan, it accrues interest like any other loan. The difference is that you don't repay any of the interest or principal on the loan until you pay it off. That could be when you sell the home, or it could be when your heirs sell the property after you pass.
  What you need to remember is that since no payments are required, the balance you owe will grow as the interest is added to the outstanding balance. While no payments are required on the loan, you still need to maintain your home and pay your property taxes and homeowners insurance in a timely manner.
  You always own the home, and if you want to sell the property at any time or pay off the loan, you can do so, and there is never a prepayment penalty. Some borrowers choose to make payments to pay off their loan early or to keep interest from accruing and the balance from rising, but that is not required.
  Reply to Michael
Michael Branson
June 2nd, 2024

I have lived with my elderly mother for approximately 10 years. Her home is on a reverse mortgage. The deed to the home has been put in three equal shares between my brother, my sister, and myself. My mother is moving into a nursing home. The reverse mortgage will become due. My brother and sister will want to sell the house as quickly as possible. Is there anything I can do as a 1/3 deed holder to stay in the house as long as possible as I have no plan or anywhere to live right now? What kind of attorney should I be looking for to help me if that is a suggestion...
Reply to Michael
- Michael Branson
  June 2nd, 2024
  
  Hello Jeff,
  I cannot give you legal advice, so I suggest consulting an estate attorney. However, I can provide some information about reverse mortgages that might influence your plans and suggest possible alternatives.
  You are correct that the loan becomes due and payable when your mom no longer lives in the property. You may be able to hold off your siblings for a while, but the loan continues to accrue interest, reducing the property's equity. Since you are the only one of the three siblings benefiting from the home while the interest continues to accrue, this may reduce your portion of the equity payout when the home is sold. You could offer to reduce your portion of the payout by the interest accrued during the time you continue to occupy the home for a set agreed-upon timeframe (this was one arrangement we saw in a similar situation).
  Also, remember that the lender will call the loan due and payable. This means that once the call has been made, they will ask for your plans to repay the loan. If the property is not listed for sale, they can and most likely will shortly begin foreclosure proceedings. They would do so because even once the process starts, it still takes a minimum of 5-6 months to complete a foreclosure at the quickest. If you haven't started a plan to pay off the loan, the servicer would start the foreclosure process so that they do not wait many months only to have to start later if you are not planning to make arrangements to pay off the loan (by paying the loan off with another loan, money you have, or selling the property).
  If there is equity in the home, there is a lot to be said for selling the home quickly. It stops the accrual of interest and preserves as much equity as possible. It allows you to sell the home on your terms before your timeframe is cut short by lender deadlines. It also allows you to sell without the pressure to accept a fast or low offer, as many homes in foreclosure sell at much lower prices because buyers know sellers are typically desperate.
  If there is no equity in the home, that's a moot point. There is no hurry to sell the home at all. Perhaps you should talk with your siblings if there is little or no equity and show them on paper what the typical costs to sell a home are (typically 6-10%). Show them examples of sales of similar houses in the area and compare them to the balance of the reverse mortgage. If the equity is so small that a fast sale won't benefit them, perhaps they would be more amenable to allowing you to remain in the home until you can no longer stay.
  But you also need to realize that the time will come when you will need to move. Sooner or later, you will need to face that reality. You should look at it as a financial decision. If there is equity, face the need to move and do what you need to do to make it happen now. If not, show your siblings why it doesn't affect them to allow you to stay. Maybe since you've been with your mom for the last 10 years and she's had no mortgage payments, you've had the opportunity to put some cash in the bank to offer them something to compensate for some equity after the costs of a sale are subtracted. There are many things you might consider that do not need to be 100% sale or stay until the bank forecloses. You might want to discuss these options with your attorney and your siblings.
  Reply to Michael
Beverly C.
April 22nd, 2024

My parents had a reverse mortgage. They have both passed. We are turning the home over to the lender. If we authorize them to remove any items we have left in the house, do you know if they charge to remove them?
Reply to Beverly
- Michael Branson
  April 27th, 2024
  
  Hello Beverly,
  
  The lender can't charge you anything if you do not agree to pay. You never signed any agreements with the lender for anything. If they foreclose and there are personal items in the home, they will be removed, and any costs will be made part of the final loss that is filed with HUD if the home cannot be sold to recoup those losses. But I do have a question for you.
  Have you spoken with both a senior real estate specialist and an estate sales professional in the area yet? Many times, these two individuals work with each other, and you may find that there are opportunities here you didn't consider. A senior real estate professional may be able to sell the home for more than what is owed on it without you even having to be involved in the sale process.
  In addition, they often work with estate sale specialists who come in and sell everything left in the home for a percentage of the sale proceeds, and then they donate all the remaining items in the home as part of their service to you. They will come in and review all the items available to be sure there is sufficient merchandise to warrant a sale to cover their time and cost as well as to pay you, and then again, you don't have to be involved in the sale at all.
  If you were going to allow the lender to dispose of them anyway, it doesn't hurt to have someone look at it for you. It has helped many people with end of life expenses or for other things that they never considered when there was personal property that no one in the family wanted or needed.
  Reply to Michael
Tiffine
March 8th, 2024

My grandparents had a small remortgage on their home. They both passed away; we received certified letters of the date and time it would be sold on the courthouse steps. The notice was also published in our local newspaper 4 consecutive weeks with the same information.
The auction was scheduled for today at 11:30 am. We were at the courthouse from 9:20-12:30, and no one came to the east courthouse steps as instructed on the notice. After many, many calls later we were informed that the 3rd party was there and didn't see anyone for the auction. This was obviously a lie as there were 5 of us there for several hours.
They have yet to inform us of the next steps as we requested and I am so frustrated with the dishonesty. Are there any laws in place for this type of situation? Wouldn't the remortgage company have to step foot on the east courthouse steps and try to auction the estate off as indicated? Any advice you could provide would be greatly appreciated!
Reply to Tiffine
- Michael Branson
  March 8th, 2024
  
  As heirs, you could always have gone directly to the lender before the foreclosure to decide to pay off the loan and keep the property. By waiting until the property goes to sale, you run the risk of others also bidding, additional costs will be incurred, and there is no guarantee you will be able to be the successful buyer.
  About the specific issue of the sale that didn't take place after advertising, etc., this would be a legal question that you would need to ask an attorney who deals with such matters. I can't advise you legally and I don't know if there are any consequences for a lender who fails to conduct a foreclosure sale after such notices. An attorney specializing in such matters will need to tell you if that constitutes a violation of any kind, if they have that kind of discretion if it just means new notice periods begin, or what.
  It doesn't sound out of the realm of the possibility that circumstances could result in a lender having to reschedule a sale for any number of reasons. But you should act quickly to determine what those are if you still want the property and see if you still have rights as heirs on the loan with the lender before it even goes to sale.
  Reply to Michael
Tina
August 19th, 2023

How long can someone renting a room stay after the death of a homeowner with a reverse mortgage?
Reply to Tina
- Michael Branson
  August 19th, 2023
  
  Hello Tina,
  Unfortunately, I can't give you a specific timeframe. An heir could give you a notice to vacate relatively quickly if they need to sell the home or have other plans. However, suppose no heir comes forward to accept the property and to work with the lender to repay the loan. In that case, the property may go to a foreclosure sale, and that process could be a matter of 5 months or 2 years (sometimes even longer). If an heir does step forward, that heir may keep the home and may want to continue the rental arrangement indefinitely. It all depends on who becomes the next owner, under what circumstances, and their plans for the property. I wish I could be of more assistance, but I have no way of knowing when these events would occur in your case.
  There is no set timeframe or rule regarding the reverse mortgage that says you must vacate now within so many days. Stay in contact with anyone who identifies themselves as a family member or representative of the lender to see if you can get any information about the progress as the situation unfolds. I am not an attorney and cannot advise you regarding any actions you should take (if any) to protect yourself otherwise. You might have yet to have any services (i.e., gas, electric, water, etc.) in your name if you rented a room. If they are no longer being paid, that might help you to decide on timing, as they will not remain on forever once those providers stop receiving payments. As I said, I cannot give you legal advice. Still, the general advice I give in many instances is that the sooner you can make other arrangements, the best for you. It is better to move when you can under your plans and deadlines than when you are forced to move and have no place secured.
  Reply to Michael
Jacki
February 11th, 2023

Hi Arlo,
My girlfriend's dad died two years ago. He had a reverse in 2008 reverse mortgage. She hasn't contacted anybody, and no one contacted her she still living in the home what does she do? She doesn't want to leave she's scared.
Reply to Jacki
- Michael Branson
  February 11th, 2023
  
  Hello Jacki,
  
  I can't tell you what she should do but I can tell you a couple of things about reverse mortgages and recent developments. The lender sends out a yearly certification that the borrowers need to sign and return to attest that they are living in the home. It is clear they have not been able to do so for the last 1 - 2 years (depending on when they passed vs when the certifications were mailed).
  If your friend has been forging those certificates, she has been committing fraud to a federally insured lender and that is a felony. Because the losses have been so high at times, HUD is looking at ways to mitigate those losses and possibly cracking down on fraud.
  My suggestion would be for your friend to talk to a realtor and if there is equity still in the home (values dropped a lot since then but also increased significantly in many areas of the country), it may really be to her benefit to sell the house now while there is still equity and then she can move with the funds from the sale before anyone discovers the issue.
  
  If the lender discovers the passing of the borrowers, there may be no problems other than them calling the loan due and payable and then foreclosing is your friend is unable to pay the loan off or sell the home in time, but why chance it? It certainly wouldn't hurt anything to get an opinion of value now, compare that to the balance shown on the statements she receives monthly and see what the equity position is before she is forced to do something.
  The more time she has the better it is for her, and she may be pleasantly surprised. If she is worried now, it would be better to at least know the options.
  Reply to Michael
Linda H.
November 14th, 2022

My mother died in 1997, and sometime in the past 25 years, my step dad's sister got a reverse mortgage on the house. He was taken to the hospital in mid-August and after being there for 3 weeks was sent to a nursing home for therapy. Sadly, it has been determined that he will be unable to live in the house by himself, so my step aunt is going to contact the reverse mortgage company and let them know. How long do they have to get everything out of the house, including items I would like to get? My aunt had told me that the company would say 30 days, now she's telling me 6 months to a year. I don't want to lose these items as they are heirlooms from my mom's parents' home.
Reply to Linda
- Michael Branson
  November 14th, 2022
  
  Hello Linda,
  
  The lender will need to accomplish several things before they can complete the steps necessary to either accept a Deed in Lieu of Foreclosure or Foreclose on the home to take the house back. The minimum amount of time for a foreclosure is 5 to 6 months from the time they file the Notice of Default. But there are two things I would like to either caution or suggest.
  Firstly, it is not wise to wait until the last minute. The sooner you can remove your personal items from the home if that is what you plan to do, the better. When you have a home that is vacant it is subject to vagrancy, theft and things often go missing. The lender will also want to secure the home to protect their security if they believe the home is in peril if it is vacant. If there are things you wish to keep, I suggest that you make plans to remove personal belongings sooner rather than later.
  
  Secondly, has anyone contacted a realtor to consider selling the home rather than just letter the lender take the property on a foreclosure? I do not know if you are the heir or sole heir, but I would suggest that someone contact a senior real estate specialist to determine if there is any equity remaining in the property and if so, well the home before allowing it to go back to the lender. If nothing else, it might help offset some of the expenses for the estate or heirs if not your stepfather.
  Reply to Michael
Harvey
October 20th, 2022

Hi Arlo,
What guidelines exist for closing out an HECM when the owner dies with an heir? What is the procedure if the owner vacates the home for 1+ years without death (for example, to a nursing home)? Does the heir still have the right to purchase the home? Or does foreclosure trigger with the heir having no recourse? Thanks!
Reply to Harvey
- Michael Branson
  October 20th, 2022
  
  Hello Harvey,
  
  The question really is whether you are "the" heir or "an" heir. The lender will begin foreclosure once they make the determination that the home is no longer owner occupied unless they have been contacted and arrangements have been made to settle the loan repayment.
  At that point, if you are the rightful heir, you aren't "buying the home" because the lender cannot sell it to you (they don't own it, the borrower, or their estate if they have passed, owns it). You are merely contacting the lender as the representative of the owner or the estate to pay off the loan.
  
  That can happen in a couple of different ways. The owner is in a nursing home but is still of sound mind and they appoint you Power of Attorney (POA) or Deed the home to you outright. If they Deed the home to you though, the lender will begin a foreclosure action for transfer of title if you are unable to pay the loan off quickly because that is something that is not allowed under the terms of the loan.
  If you have a POA, you can contact the lender by giving them a copy of the POA and notify them that you wish to receive a Beneficiary's Demand as you will be paying the loan in full on behalf of the owner.
  Transfers of ownership between you and the original borrower would be completed at your convenience once the loan is repaid. But you need to remember that a POA is not to be used for self-serving actions and therefore, you cannot use it to sell or transfer the home to yourself on behalf of the borrower. I would suggest you contact an attorney to be sure you take whatever precautions you need so that the title is insurable later when you try to sell the home or finance it.
  
  If you do not think you can get the POA or do not have one at this time, you can petition a court for a court-ordered guardianship of the family member. The lender cannot give you any information about the loan without something from the borrower in the way of written authorization, a POA, or the court ordered guardianship.
  Otherwise, the lender has no way of knowing that you have any right to the loan information and that some other relative would not be the legally entitled party to the information. Once the lender is in possession of the proper documentation to verify your standing, they can work with you to give you all the information needed to pay off the loan pursuant to the HUD guidelines.
  Reply to Michael
Didi
August 17th, 2022

I am renting in a house that has a reverse mortgage and the owner passed away. how long do I have before I need to move out?
Reply to Didi
- Michael Branson
  August 17th, 2022
  
  Hello Didi,
  
  I am not an attorney so I cannot answer this from a "tenants rights" position. And I honestly can't tell you what the heirs intend to do. You might have until the lender forecloses and evicts you which could take over 6 months or the heirs may begin an eviction action immediately because they need to sell the home and then it would depend on the laws in your area as to what must be done based on those circumstances.
  I wish I could be more help to you, but I don't know who will own the property now that the owner has passed, what their intentions are or what the laws are about taking possession (and even if I thought I did, I am prevented by licensing law from giving legal advice because I am not a licensed, practicing attorney).
  
  I can give you some basic guidance about the reverse mortgage though and that is the loan will become due and payable now and that the lender will contact the heirs to see if they intend to repay the loan (i.e., with funds available to them, with a new loan or by selling the property) or if they intend to do nothing and just let the lender take the property through a foreclosure action.
  And if the heirs intend to occupy the property themselves, I cannot tell you what timeframe requirements the law prescribes for them to give to you to allow you to vacate the home.
  Reply to Michael
Scott T.
August 2nd, 2022

A relative had a reverse mortgage and passed away. Someone else is living in the home that is not the heir. Is it the responsibility of the lender to evict the unauthorized resident or is it the responsibility of the heir?
Reply to Scott
- Michael Branson
  August 2nd, 2022
  
  Hello Scott,
  
  That would depend on what the heirs intend to do with the property. The homeowner, the estate or the heirs (depending on what actions have been taken to date) still own the property until the day the lender takes the property by a foreclosure action. And that is not a foregone conclusion as the heirs have the right to keep the home or sell it if they wish, but they can also just walk away and owe nothing if that is their choice. Until such time as the lender becomes the rightful owner of the property through a legal foreclosure sale though, the lender would not be able to evict any current tenants of the property.
  
  The heirs of the owner need to decide what they want to do with the home and any contents if there is anything left in it from their loved one. I am not an attorney and cannot advise you but if your relatives want to sell the house or possibly live in it themselves, they may need to evict the current tenant in order to do those things.
  Also, if there are personal belongings that the family wishes to get before they turn up missing, you should speak to the attorney to determine what rights if any you may have to enter into the dwelling to retrieve personal effects before they can be removed by other parties. If there are no personal effects, they are interested in keeping or they do not wish to keep the home, they don't have to do anything.
  The lender will foreclose on the loan and either the lender or the party who bids higher at the foreclosure auction will evict the tenant after they become the owner. I would encourage the family to first do everything to research the loan owed and property values though to see if there is still equity in the home before walking away and leaving money on the table.
  Reply to Michael
Dallas W.
July 19th, 2022

Hello Arlo,
Myself and my brother are living in our family house. A house that's a reverse mortgage. Dad died in 2013. Mom this year. Which brings us to this dilemma. Mom died on February 14. We got the "letter" in March. So, we have 6 months.
We want an extension. I have good job. My brother is on disability. So, no money there. Of course, we would like to keep it. Just under $300,000 owed.
We also have the option to walk away. A very nice house.
Reply to Dallas
- Michael Branson
  July 19th, 2022
  
  Hello Dallas,
  You always have the option to walk away but before you make that choice, I would suggest that you check with a local real estate professional to determine the most probable sale price of the home if you were to sell it. Keeping the home sounds like it is your preference but when you talk of an extension, how much time would you need and for what purpose?
  If you need a little time to resolve any title concerns or other short-term issues, you should contact the lender and outline the time you need, for what purposes and the lender may work with you if your request is reasonable and they can monitor your progress toward getting the loan paid off.
  If the request for extension is a long one or the lender/HUD feel that there is no measurable progress toward the payoff of the loan, they would eventually begin the foreclosure process.
  They would much prefer that you keep the home and the loan is paid off, even if that means at 95% of the current market value even if that is less than the amount owed, but if it begins to look like there will be no repayment coming, they will start the foreclosure process.
  Reply to Michael
Phil
June 30th, 2022

If you extend the time a seller can have to move out, are you in violation of the reverse mortgage?
Reply to Phil
- Michael Branson
  June 30th, 2022
  
  Hello Phil,
  
  Please forgive me but I want to be sure I understand the way I approach this question. I am assuming that you are asking as the purchaser of a new home for which you used a reverse mortgage for your financing, is that correct?
  If so, remember that you sign a Deed of Trust or Mortgage (depending on where the property is located) that contains occupancy requirements as part of the reverse mortgage that states you will occupy the property as your primary residence within 60 days after closing.
  As long as you only give the sellers an extension that lasts less than that and you still move in within your contractual commitment, you would be fine (i.e., you give them a 30-day extension and you move in within the next 30 days).
  But if you give the sellers an extension that would last beyond that commitment you made, your lender could call the Note due and payable as the HUD loan could not be insured as you are not occupying the property as required under the reverse mortgage program.
  Reply to Michael
Robert
June 24th, 2022

Hi guys I have a question. Will the reverse mortgage holder pay me to clean out my mother's house or can I take what I want and leave it to them to clean the house out as they are now the owner ?
Reply to Robert
- Michael Branson
  June 28th, 2022
  
  Hello Lee,
  
  I do not know where you are located but that doesn't sound like a legitimate process for a foreclosure in any part of the country.
  My suggestion is to contact a real estate attorney who handles such matters and see about getting a stay immediately from a court and go from there. I have never heard of a lender being able to foreclose without filing proper notices and if this one did not follow the law, you should have legal recourse.
  
  My concern from your comments though is that other family members may have been dealing with the lender and if they were the actual and rightful heir to the estate, the lender may have acted in accordance with the law by dealing with them and not with you. The lender cannot negotiate with you to sell you a house they do not own. If you were not your grandmother's legal heir, then your efforts to purchase the home should have been with the rightful heir, not the lender.
  The lender will not get into the middle of a family dispute and if someone else produced documentation to show they were the rightful heir, the lender not entertain additional individuals other than the rightful heir.
  Have you spoken with other family members (sons or daughters of your grandmother) to see if they have been in contact with the lender?
  Reply to Michael
Carol
May 10th, 2022

Hello Arlo,
My best friend passed in January 2022. I live with her and now I have no idea how long I have before they come and put locks on the home in which I reside. I moved in to help care for her and also until I can get my home built. Her son told me that reverse told him they can come and put locks on my doors at any time. I'm in a panic. Where I live is hard to find a place to rent especially with pets. Can they lock me out of my home without any kind of eviction notice?
Reply to Carol
- Michael Branson
  May 10th, 2022
  
  Hello Carol,
  
  A lender cannot typically secure a home before they actually own it (which would only come after there has been a foreclosure sale) but can only if there is danger of the home being vandalized or other problems due to the property being unsecured and vacant.
  There are provisions in the loan documents that would allow them to protect their security for the loan (the property) if there is risk that leaving the home unsecured could allow the property to become open to vagrants or unusual wear, etc.
  They typically cannot enter into a property that is secure and being maintained that they do not own with no good cause to protect their security. I guess it might depend on what the owner's son told them as well. Did he tell them that the home was occupied and that it was secure? If so, they would need to follow any legal procedures to secure the residence and that typically does not include coming in an changing the locks without any notification to any residents of the property.
  
  Since you are not the owner or the heir though, this is really a question of legal tenants' rights and I cannot advise you in that area. I would suggest that you contact an attorney who specializes in this area of law in the county where the property is located to determine what you should do to protect your rights as the person living in the property.
  It should not take more than one call/visit so I would not imagine the cost being too much and I would think that the charges would be well worth the peace of mind and the knowledge so that you can plan accordingly and be sure of what you and the lender can and cannot do - at least until the lender completes a foreclosure and becomes the owner of the property.
  Reply to Michael
Nancy
March 15th, 2022

Who do I contact to get a renter out of my parents' house which has a reverse mortgage on and my dad has passed and my mom moved out of state?
Reply to Nancy
- Michael Branson
  March 15th, 2022
  
  Hello Nancy,
  
  The eviction process would be the same as it would with any other loan. You need to contact a real estate attorney to determine what you must do in your state/location to evict a tenant based on the circumstances.
  The lender will begin foreclosure though if they become aware that there are no original borrowers left living in the property so I would advise you not to wait too long, especially if your plans are to sell the home.
  Reply to Michael
Chuck
March 13th, 2022

Does the lender have to give you a notice first before they start a foreclosure process? & if they start the foreclosure process, can you still either buy the house back or sell it?
Reply to Chuck
- Michael Branson
  March 15th, 2022
  
  Hello Chuck,
  
  Every state has different laws regarding the foreclosure process and the lender requirements.
  I'm not personally aware of any state that does not have notification requirements and that typically includes both a right of reinstatement period where if the default is cured the loan can be reinstated (left intact on the property) followed by a period when the loan may still be paid in full but can no longer be reinstated prior to the foreclosure sale. Judicial foreclosures may even allow for a right or redemption but I am not familiar with the judicial process or when that might occur (or in which states).
  If you have questions on your home and an impending foreclosure, I would always recommend you speak to a real estate attorney in your area.
  Reply to Michael
Gary B.
March 2nd, 2022

My father has reverse mortgage passed 4 yrs. ago. I still stay in home as well as another tenant. House is being foreclosed on next month, how long before they can put us out?
Reply to Gary
- Michael Branson
  March 2nd, 2022
  
  Hello Gary,
  
  The loan became due and payable when your father passed away. The best thing to do would have been to see if there was equity at that time and if so, sell the home and retain the equity.
  If there is any equity remaining at this time, you may still have time to sell and keep that equity but depending on how far the lender is in the foreclosure process, you would need to contact a real estate specialist and move quickly. Once the foreclosure sale has been conducted, it depends on the laws of the state as to how quickly the lender can evict you but that is usually about 15 to 30 days, I believe in most areas from what I have been told.
  So, your time really depends on where in the foreclosure process the lender is at this point. If they have only just started, you may have another 4 or 5 months.
  If they are near the sale date, it could be just a month away or you could be anywhere in between but I would strongly recommend you check to see if there is any equity and if a sale would save that equity before the foreclosure.
  Reply to Michael
James
February 17th, 2022

My Mother passed away on December 30 2021 & she had a reverse mortgage & I lived with her as her caregiver for 10 years. The reverse mortgage lender has yet to notify me, is it possible they will never find out she passed away? My mother told me they will not take the house as long as you pay the property taxes & insurance. Now I have no intentions to pay off the loan or sell the house & I'd like to live in it as long as I can. What's my best bet to stay in the home for as long as I can?
Reply to James
- Michael Branson
  February 22nd, 2022
  
  Hello James,
  
  That is not accurate. The lenders are notified in a number of ways and it is not unusual for them to not notify the family withing the first 60 - 90 days of the passing of the borrower.
  Once they do become aware of her passing, they will contact you to determine what you plan to do to pay off the loan and if you have no such plans, they will initiate foreclosure proceedings. You would have a total of about 6 - 8 months typically from the time they first notified you before they could foreclose and sometimes longer but that depends on how quickly they are able to move on their end.
  
  The best thing you can do at this point is to contact a real estate professional in your area and find out the value of the home. Compare that to the amount owed on the loan. If there is still equity in the home, you may want to consider listing the home as soon as possible and selling it so you can keep the equity instead of letting it slip away in a foreclosure.
  If the lender forecloses, the only way you would get any of the equity is if someone comes in and bids higher than the lender's opening bid and that is the amount owed on the loan whereas if you are able to sell the home yourself, you would definitely keep the amount of the sale over and above the amount owed. It's worth finding out.
  Reply to Michael
Merry O.
February 16th, 2022

What type of attorney do you speak to about rights of a live in girlfriend of the borrower? I have lived in the home 12 years.
Reply to Merry
- Michael Branson
  February 22nd, 2022
  
  Hello Merry,
  
  I am not sure if you are specifically referring to a reverse mortgage or laws in general for other purposes. And I know that different states treat cohabitation differently but most states do have some provisions for couples who are not married but choose to live together. Some states recognize a common law marriage under certain terms, some do not.
  Being that we are not a legal firm and cannot give legal advice, I would probably need to direct you to the internet to conduct a search on this matter. On the Google search bar, I just typed in "What law specialty covers the rights of live-in partners" and there were over 100,000 search results returned. I think you could probably narrow your search down by including the state in which you live so that you do not get results for different states where the laws may be different.
  You might also be able to narrow your search further if there are certain criteria that pertain to your reason for asking (i.e., after a breakup, if one partner dies, etc.). One of the suggested related searches is "legal rights of unmarried couples living in" and then you need to put in your state.
  Reply to Michael
Annetta I A.
December 19th, 2021

My sister and brother have been staying in my mother's house since she passed away on 9\26\2021. The other brother who is the executor of the will/trust and sister has not notified HUD. And are trying to stay as long as possible. The proceeds if any are to be divided between 6 of us. They are not speaking to me. How long can they stay without paying rent or mortgage?
Reply to Annetta
- Michael Branson
  December 19th, 2021
  
  Hello Annetta,
  
  It's really a shame when some of the heirs do this IF they are making no effort to rehabilitate or market the home. They are not paying rent or payments and the interest continues to accrue on the loan which means that while they live in the home payment payment-free, the interest continues to accrue so the rest of the family is basically paying for their occupancy in the home as the interest continues to pile up and the other heirs get less money (and there is a possibility that the taxes and insurance will not be paid as well further eating into any remaining equity).
  If the home required maintenance or repairs, they could be getting the property ready for market and so it would really be best if you could talk to your family to see if they are just trying to live for free in the home and plan to walk away or if they are working on it to make it more salable. The loan is due now, but the lender will not call it due and payable until they have received notification of the passing of the borrower (your mother).
  If there is any equity remaining in the home at this time, the best thing that could happen for all the heirs is for the home to be placed on the market and sold as quickly as possible so that the most equity possible is retained and split by all the heirs. It is possible that your brother is getting the home ready for sale though and sometimes that sales price can increase significantly if the home needed repairs.
  In that case, he could be working toward marketing the property before notifying the lender and facing a foreclosure action. And another thing to consider is that if there is no equity in the home (in other words, the home would only sell for what is owed on the loan or less), then there really is no harm to other heirs for them to wait for the lender to call the loan due and payable as there would be no equity remaining to split in a sale at this time. In other words, if there is no equity to split, it doesn't matter when the house sells.
  
  I cannot give you legal advice but I can advise you to talk to an attorney if you feel there is equity in the home and you feel the conversation is warranted but your brother will not communicate with you. During the course of conversations with attorneys on some of the research we conduct, we have been told that executors do have some liability to other heirs if they do not act in the best interest of all when administering the will.
  I cannot say if this is due to the type of will we were discussing at the time, the state in which that particular case was located or really anything about it though. Only that it was mentioned to me and since I am not an attorney and cannot give legal advice, I can only pass on that it might also be the case for you so it is something that you may want to discuss with an attorney if you feel that you are getting nowhere with your siblings and there is equity in the home.
  Reply to Michael
Tamara
November 29th, 2021

Hi ARLO,
My aunt passed away July of this year and lender has sent me a notice of intent to foreclose on the property. This was surprising since I'd talked to the them to share the plan to sale the property. Since getting the intent to foreclose letter, they are requesting that I give them listing agreement and signed letter declaring that the family is selling the property. I've done that. They're also asking for monthly updates about the sale. To date I've told the lender that we are moving caregiver out and making repairs to sell. However, we recently determined that we need to legally evict the caregiver to get possession on the home. Are there any cons to being that explicit with the lender?
Thanks soo much for your response.
Reply to Tamara
- Michael Branson
  December 7th, 2021
  
  Hi Tamara,
  I honestly don't know what your lender is considering at this point so I would not know how to advise you. The lender needs to determine where you are in the process of selling the home and they will work with you as long as they see progress of the sale but if they think you are stalling or that you are not making a good faith effort to sell the property without delay, sooner or later they will begin the foreclosure process because it still takes multiple months to complete a foreclosure even after a foreclosure has begun.
  If they feel that there is not an honest effort to sell the home and repay the loan, the lender's only option to mitigate losses is to foreclose as quickly as possible to stop interest and losses from mounting.
  Only you can determine if it is in your best bet to level with the lender and give them a timeframe as to when you believe you will have possession of the property and the ability to sell it. I would just advise you that if there is anything you can do to speed the departure of anyone living in the home so you can sell the property sooner rather than later and avoid any foreclosure actions, you can help be sure that you are not pressured to sell faster than you might otherwise wish you needed to and head off a foreclosure sale and additional costs.
  Reply to Michael
Donna Z.
November 17th, 2021

Hello ARLO,
My mom went to a nursing home July 1. I notified reverse mortgage lender at that time. My mom passed away in October and I notified lender again. My older brother has been living in house for past 4 years because he was mom's caregiver and homeless prior to moving in with mom. My brother has no job and no motivation to get one, so he will be homeless again, once he is evicted by lender. The plan is to walk away from the house and leave it the lender. Does the house have to be emptied out of all personal belongings? Are the children responsible for removing all items from the home? Plus, the damage (punched holes in walls and doors) who is responsible for?
Reply to Donna
- Michael Branson
  November 17th, 2021
  
  Hello Donna,
  
  You have a tough situation in that you do not have the participation and cooperation of all the siblings/heirs with regard to the final disposition of the home. The house does need to be free of all personal property if you plan to give the lender a Deed in Lieu of Foreclosure but it doesn't sound like that will be happening anyway.
  If the lender must foreclose, once they take possession, they have the legal right to clear the premises of any personal property left behind so if they take possession through a foreclosure action, they will have the residence cleared after they take title and possession if there is any personal property left inside.
  The real property is the only security for the loan and the lender has only the real estate to look to for repayment. I am not an attorney and cannot advise you though if the lender determines that there is damage/theft done to the property by heirs and cannot tell you what to do if your brother is purposely damaging the property or what the lender might do.
  For that, I would suggest you contact a real estate attorney to determine any liability to your brother or the estate.
  Reply to Michael
Jerry C.
October 10th, 2021

Hi ARLO , I am 84 years old and my wife is 67. I am the only signer on a RM and the Deed. When I pass away how long can she stay in the home? Another Question: Who does the appraisal of the property (the lender, tax office or my own choice of appraiser) to satisfy HUD? Thanks for your help.
Reply to Jerry
- Michael Branson
  October 17th, 2021
  
  Hello Jerry,
  
  This is not a black and white question. Firstly, was your spouse your spouse at the time you obtained your loan? If so, she is probably an eligible non-borrowing spouse under HUD's new rules now and can remain in the home as long as she continues to pay the taxes and insurance in a timely manner. You should contact your lender now to determine her status. If you married your spouse sometime after the loan was closed, she would not be an eligible non-borrowing spouse and then things would depend on who was to receive the home upon your passing. If she inherits the home, she can stay in the house or sell it, whatever she wishes, but the loan becomes due and payable. She would need to either refinance the home or pay the loan off with other funds available to her if she wants to remain in the home or get a new loan. Otherwise, she could list the home for sale. If she is not your heir and someone else will inherit the property, then her occupancy may be dependent upon them.
  
  If she does not plan to stay in the home or she is not your heir and will not have title to the property, her ability to remain in the home would depend on the next owner. If the lender is forced to foreclose to sell the home and pay off the loan, then her ability to remain in the home would depend on how long it took the lender to perform that function. The quickest it could happen would be 6 months and we hear of it still not being completed sometimes for over 2 years so there is no exact timeframe that I can give you. The lender must determine that you are no longer living in the home, appraise the property, advise HUD and get their direction and then proceed accordingly. A foreclosure can be completed in most states in about 150 - 180 days from the date the lender first notifies the borrower or the heirs and that is sometime after they determine that the owner has passed and have asked the heirs what they intend to do. Therefore, the best guess is about 7 - 8 months after they determine that the owner is no longer living in the home but that is just a guess because there are so many things that can come up in that time.
  
  If your spouse is to get the home and you want to make it easier on your spouse, you can add her to title at any time now and also write a letter to the lender now authorizing her to speak to them and them to her on all matters relating to the loan. Many times, things get delayed only because the lender has no authority to speak to an unauthorized third party about your loan and they do not know which heirs they can and cannot speak to and do not want to get into the middle of family disputes. It's not a bad idea to talk to an estate attorney to have plans in place so that when the time comes, your spouse is not trying to arrange things when you are not there to sign, especially if there are others who may not accept your wishes and contest the will or the rights of a spouse.
  Reply to Michael
Jeff C.
September 22nd, 2021

Hi ARLO, my grandfather had a reverse mortgage on his house. He passed away a year ago today. I was his care provider and I received room and board for my services. I'm still currently living in the house. We got a notice on the door telling us that there is going to be an auction on the property tomorrow. Don't I have tenants' rights?
Reply to Jeff
- Michael Branson
  September 22nd, 2021
  
  Hello Jeff,
  
  The loan became due and payable when your grandfather passed away. The lender has been notifying someone who is the identified heir of your grandfather for the last year that the loan must be repaid at that time which could include paying off the balance with cash available, refinancing with a new loan, or selling the property and paying off the loan with the sale proceeds.
  There are numerous notifications that the lender must give before a sale auction takes place which include when the foreclosure starts and that gives owners approximately 4 months from that date that a foreclosure has begun and that there will be an auction of the property if the default is not cured. I cannot tell you all the foreclosure laws in each state but typically, there are notices posted on the property even before the notice of auction.
  
  When the auction takes place, the new owner of the property (and that would be the highest bidder at the auction which is not always the lender) would then typically need to evict any tenants, if any, remaining in the home.
  I am not an attorney, and I cannot tell you what that time frame required for such an eviction would be in your state. You should contact an attorney to determine your rights and obligations for that time after property title passes to the new owner and you receive an eviction notice.
  Reply to Michael
Sara
September 2nd, 2021

Hi Arlo, my mom has a reverse mortgage on her home and has a balance. She passed away 2 weeks ago. I understand we have 6 months to pay off the loan or 12 months to sell the home. During that time is a family member who is not on the deed allowed to live in the home?
Reply to Sara
- Michael Branson
  September 2nd, 2021
  
  Hello Sara,
  
  If the home is still owned by mom or her estate, you can certainly choose to live in it. The timeframes you mention are not hard dates though and you should know what will be required and what the lender can do at this time.
  The loan becomes due and payable now. The lender will request a letter from the heirs for them to tell the lender what they intend to do to pay the loan off now that the balance is due. If you tell them that you intend to pay the loan off with a refinance or with funds that you have available to you, they will work with you to complete the payoff.
  There may be things you need to do with the title to complete that. You may need to have a probate completed or other such action so that the title will pass to you or other heirs (no lender will loan you money on a house you do not own) and therefore if you communicate with the lender and give them the documentation to show that you are completing the new financing as well as clearing the title, they should have no issue allowing you time to complete a refinance of the loan.
  If you do not, the lender would begin a foreclosure process and depending on the state laws where you live, that can be completed in anywhere from 5 to 12 months from the date the lender files. The lender usually must contact you first to determine your plans, obtain an appraisal on the home to give you your options and then if the foreclosure is to commence, they would file after that.
  
  The sale is not an automatic 12 months. HUD allows heirs up to 12 months, 3 months at a time with extensions. If you are diligent about listing the home and working toward a sale, if you need up to 12 months to sell the home due to market conditions, etc., HUD will allow the lender to grant those extensions. In this market, most houses are selling in much less time though.
  I would be surprised if extensions were granted for the sale of a home at this time given the rapid pace of sales, especially after family was moved into the property as a good faith effort was not being made to sell the home without delay.
  Reply to Michael
Helen S.
August 23rd, 2021

I'm going on 83gyrs and poor health I have a 61yr old handicap son that will be 62yrs old on May 1 of 2022, he wants to know if it would be possible for him to qualify for the reverse mortgage after I'm gone. And if so, what would we have to do, since I feel I don't have much time left.
Reply to Helen
- Michael Branson
  August 24th, 2021
  
  Hello Helen,
  If you want to be sure he is also covered on the loan, you need to wit for him to be 62 years old so that he can also be a borrower on the loan. As long as he also lives in the house, you can Grant Deed the home to yourself and your son and then refinance the home with a reverse mortgage in both your names at that time.
  Reply to Michael
Susan T.
June 29th, 2021

I live on property that has a reverse mortgage, been renting for 11 years no problems, just recently the owners passed. A daughter moved in, and we continued the same as always paying her rent, slowly her ex con son and her are doing stuff just to annoy us but we've been ignoring it to get to the point. She was on her alcohol, drug binge raising hell hubby told her to leave our yard, she texted me later and said my dogs are a nuisance and she's going to start eviction. Nuisance is barking in her eyes, but she has an outside dog barks all night. Our dogs bark at night yes because her and her son are tweaking, and this happens sometimes until 2am. They are moving hay with tractor, lifting dumpsters, and dropping on ground, driving around revving engine. This was a nice quiet neighbor, safe for kids till daughter moved in. We knew that a move was going to happen we've been looking for a while now. I want to know how much time we have; the family cannot afford to keep the place, so she has 6 months. I just want to know my rights, we are never late on rent even though they haven't done any repairs, need a new sewer dug, cellar is flooded, bathtub is falling though floor, no insulation, I could go on. I am sorry I started to ramble lol. I appreciate any advice you can give me Thank-you so much. Oh, I'm in California. We never signed a lease; her parents were good people.
Reply to Susan
- Michael Branson
  June 29th, 2021
  
  Hello Susan,
  
  I really cannot give you any advice regarding your rights as a renter. That would constitute legal advice and I am forbidden by licensing law to give legal advice. We are licensed lenders, not attorneys and part of our licensing requirements is to go through annual testing that reminds us that we cannot give legal advice.
  What I can do though that may help you just as much is give you a little information about reverse mortgages and the way they work. You see, even though your rights as a tenant allow certain things, the reverse mortgage is now due and payable and based on what you are telling me, the current owners may not own the property much longer themselves so it may be a moot point. Let me explain.
  
  Once the last borrower on the original loan passes (or is no longer living in the home), the loan becomes due and payable. If the owners are falsifying yearly certifications that they are living in the home when they do not, it may take the lender a long time to realize that they no longer live in the property as their primary residence.
  Once they pass though, the lender usually finds this out through other resources they have available to them. Once they become aware, they will demand repayment of the loan in full. If the heirs do not have the resources to repay the loan or are unable to get new financing on their own, they would be forced to sell the house or let the lender foreclose and take the property. From your description, it sounds like the daughter does not have the wherewithal to repay the loan. In that case, she would need to sell the home, or the lender will take it back through a foreclosure action.
  
  This might take a little while, but either of these actions would most likely result in the same ending for you - you would need to find a new place to live due to a sale to new owners or upon the bank foreclosure. I would suggest you contact an attorney if you believe you have any recourse against the landlord but be sure to let them know that there is no signed lease and the likely status of the reverse mortgage. I cannot tell you what the attorney will advise but, in the end, I believe the ultimate result will be your move anyway based on the inevitable ending of the reverse mortgage.
  You will need to determine if the time spent would be better looking for a new place to live based on the fact that the only hope of staying there is if a new buyer comes in and wants to rent the place to you (and doesn't want to raise rents, etc.) and only the attorney can tell you if there is any reasonable expectation of recouping the costs of seeking a judgement let alone actually winning in that effort.
  Reply to Michael
Darlene
June 28th, 2021

My mother has a reverse mortgage for years. after my kids grown and she is in bad health I moved in to take care of her. I want to buy the house and tried but they kept going up and up until the cost of the house would be more than it was worse so we couldn't go that route, I found out we could buy it for 95% so I checked into that. Not long after having a appraisal on it for the first time to this time. they did an appraisal and came up with things they said would have to be fixed first. I don't know how it passed the first time. not this time. I can buy the house for 62 but with cashier's check. Is there any way for me to pay this back or does it have to be all at once?
Reply to Darlene
- Michael Branson
  June 29th, 2021
  
  Hello Darlene,
  You can absolutely pay the loan off with a new loan as well. You should speak to a standard or forward lender to see for what programs you qualify. You can use any type of financing so that would include FHA, VA, or conventional loans.
  Reply to Michael
Sher E
May 16th, 2021

After a parent who has a reverse mortgage dies how long does an heir of the property who served as a caregiver have to move out of the property? If the heir chooses to do a deed in lieu of foreclosure who pays the utilities, insurances and taxes once they notify the lender of their intent? Must the heir vacate the property as soon as they notify the lender? How soon after the death must the lender be notified and is there a penalty for delaying to do so such as if the death certificates have not been received?
Reply to Sher
- Michael Branson
  May 18th, 2021
  
  Hello Sher,
  
  These are all very good questions, and none have a definite answer. It all depends on what the heir wants to do, the lender's actions and/or HUD. If the property has any equity left, then you would want to move as quickly as possible to protect that equity position. But since you are talking about staying as long as possible and not paying the loan off to sell the property or refinance the loan, I will answer from that perspective.
  
  The utilities are being used by the person in the property. The lender will not pay them and if you do not, it is up to the utility company to decide how long they will allow them to go unpaid before they will shut them off.
  There is a very good possibility that you would be able to remain in the home for many months and possibly more than a year before a foreclosure is completed if that is your goal so you may want to keep that in mind. It would be uninhabitable with no power or water so you may want to just pay the utilities to keep them on while you plan to stay there and use them.
  
  Insurance and taxes are a different situation. Taxes run with the land so that is your call. Insurance is a different beast. If you do not pay the insurance, the lender will force-place coverage that will cover only the dwelling. It will not cover the contents or liability.
  If the estate has any assets you want to protect from lawsuits or you have any personal possessions that you are concerned about in case of fire, other disasters or theft, they would not be covered on the lender's policy. You might want to consider continuing the insurance coverage in those cases but that is your call.
  
  Most lenders receive notice of the borrower's passing from other means they have available but you have no requirement of notification. You must not forge anything to indicate that the borrowers are still there if you receive anything in the mail as that would be fraud and you could be prosecuted but you have never signed anything stating that you promise to notify the lender and therefore you are not violating any law or terms of any contract by not doing so.
  If they are going to take the home anyway, what penalty could they assess to you, a non-borrower in the transaction? And you are not required to sign a Deed in Lieu of Foreclosure, you can remain in the home through the entire foreclosure process if there are no other heirs who think and act otherwise which can take 6 months on the shortest timeframes to well over a year to multiple years at times.
  Reply to Michael
Anthony J.
May 10th, 2021

If the owner of the residence has passed, without a death certificate issued, and the 6 months have passed for the bank to legally take possession of the residence, according to the original contract, will the renters be immediately evicted?
Reply to Anthony
- Michael Branson
  May 10th, 2021
  
  Hello Anthony,
  
  The renters will be evicted by the lender as soon as the lender takes possession of the property and that would be after a foreclosure sale.
  The bank does not take possession automatically after any set time after the borrower's pass, they must still go through the legal process of foreclosure.
  Any heirs of the borrower may still come in and decide they want to keep the home or sell it though and they may decide to evict, and that timing would be up to them.
  Reply to Michael
Mario L.
May 5th, 2021

My mom just recently passed away on 4/1/21, my mom spent the past 3 months at a Senior Rehabilitation /Long term care facility. Since my mom was not living at the address of the home on the RM, does the 6 month rule of non resident at RM address take effect form day one at the facility?
Reply to Mario
- Michael Branson
  May 10th, 2021
  
  Hello Mario,
  
  Owners with a reverse mortgage can be out of the home for up to 12 months for temporary health reasons such as to move to a care facility for temporary care after an accident or illness, etc.
  However, once the move is determined to be permanent, the loan is due and payable under the terms of the loan. Such a determination could be made if the homeowner's medical condition prohibited them from returning to the home or upon their passing. While your mother was at a rehab facility, if she were still planning to return home, she had up to 12 months to complete that plan before the move would be considered permanent.
  Upon her passing, it is now obviously a permanent move from the residence and the lender can and probably will call the loan as soon as they become aware of this fact. Her time at the care facility does not factor into the timing now, but rather the fact that the loan becomes due and payable upon the passing of the last borrower on the loan. If she is married and there is another borrower on the loan who is still living in the property that would not be the case but since you have not mentioned a spouse also on the loan, I do not believe that to be the case based on your comments.
  
  My advice at this point is to begin doing whatever you need to do to either refinance the loan or sell the property if there is still equity in the home or decide if you want to let the lender worry about it if you do not believe there is any value remaining. The first step would probably be to contact a real estate specialist in the area and compare the selling prices of similar homes to the amount owed shown on mom's last statement to decide what would be best in your circumstances.
  You do have some time and even if you let the lender take the home, it will still be some months before they can do so but the sooner you are ready to act on your side the better off you will be and the less stress you will have to complete everything you need to do.
  Reply to Michael
Jerry P.
April 13th, 2021

Hi ARLO,
My mother-in-law just passed she had custody of a great grandchild for the past 16 years he is 21 now but has a mental disability. How long does he have to stay in that house it was on a reverse mortgage for the past 12 years?
Reply to Jerry
- Michael Branson
  April 13th, 2021
  
  Hello Jerry,
  
  As soon as the lender becomes aware of the passing of the last borrower on the loan, they will contact the heirs to ask them what they plan to do with the property.
  The heirs have the right to keep the home, sell the home or simply walk away and allow the lender to take the home back to repay the obligation but the loan is due and payable currently.
  This entire process can take 12 months (or more in some cases) or it can go as quickly as 6 or 7 months including the foreclosure and the lender taking possession of the property.
  My suggestion is that you first determine the value of the home and compare that to the amount owed. It may be to the family's/disabled individual's benefit to sell the home if there is equity available and that money can be used for further care expenses.
  Reply to Michael
Lisa
April 1st, 2021

I have been living with my mother for the past 2 yrs and taking care of her.. She has a reverse mortgage no will or trust because she thought she was upside down. We actually have a buyer that will pay market value but I spoke with an attorney today and she said after attorney fees and such there would be next to nothing left and advised me to walk away.. the attorney indicated the reverse mortgage companies come in within 90 days and change locks... so over the next month I need to find a place a get out.. reading above it sounds like it may take 6 months for this process... I am not trying to milk this but having a hard time finding a place on such short notice. Will they actually change the locks and not let me get my stuff out... or will I have plenty of warning? I want to do the right thing but trying not to have a nervous breakdown in the meantime. Also taxes are due in 10 days for the next 6 months... is that something I better pay?.
Reply to Lisa
- Michael Branson
  April 7th, 2021
  
  Hi Lisa,
  I would not want to contradict your attorney because I am not sure what phase of this process you are in. If the reverse mortgage lender has already begun foreclosure, then the timeframe for when the lender can come in and evict and change locks would be drastically different from if they had not yet even started.
  For example, if the lender has not yet notified you that they are calling the loan due and payable and has not begun the process to call the loan or foreclose, they cannot complete that entire process in 90 days.
  They must notify you that the loan must now be repaid in full, they order an appraisal and if you do not indicate that you are going to repay the loan or sell the property, they would begin the foreclosure procedures which in and of themselves take anywhere from 120 - 180 days in most states (longer in some).
  And that time does not start until the filing of the notice of default and only after the lender or the new owner (if someone bids higher than the lender at the Trustee's Sale, the new owner could be someone other than the lender), the eviction process would begin and that is also different in each state. I do not know if that is currently being lengthened due to Covid considerations still or not.
  The bottom line is that depending on where you are in the process, your attorney may be correct that you are 90 days out or if the lender has not even filed a notice of default at this time, your understanding of 6 months or more to complete things is probably more correct.
  But I do not want to advise you either way because there is no way for me to know where the lender stands on their progress currently. What I can tell you is that I would advise you not to wait until the last moment and work as diligently as possible to find a new place as quickly as possible if you have resigned yourself to the fact that you cannot stay anyway.
  Whether you pay the taxes is your call but if you can use the funds for other expenses (like moving), decide on where best to spend your money. Only you can decide if you do sell the home, if the penalty on the taxes paid late would be more detrimental that the benefit of the use of the funds, especially if the home does not sell and you never incur the expense.
  One way of the other, it sounds like you will not be remaining in the home so the cost/benefit depends on the penalties for late taxes that would come out of the proceeds of the sale if you do sell versus the amount of money you would need to pay that you would never recoup if you do not sell the home and the home goes back to the lender.
  Reply to Michael
Terreia P.
January 20th, 2021

I rented a room from a person that has a reverse mortgage, and I was also her care provider. The arraignment was that I would help her out since she could not really pay me. My rent was low, so I gave her a year worth of rent and now she is dead. What happen now?
Reply to Terreia
- Michael Branson
  January 20th, 2021
  
  Hello Terreia,
  
  I am sorry, I cannot answer this. I can tell you that the loan is now due and payable.
  The owner's heirs have the option of keeping the home by paying off the loan, selling the property and keeping any equity or letting the lender take the home by foreclosure or Deeding the property to them if they do not wish to become involved in the final disposition.
  What they choose to do is totally up to them at this point and the lender will be involved following their decision. If they keep or sell the home, then you would need to see what arrangements can be made with them to see what you need to do to protect your rent payments.
  If the lender takes the home back, that probably will not occur for a minimum of 6 months and maybe longer so you may be able to remain in the home long enough to get credit for your rent payment.
  I honestly do not know what the rent you paid is in comparison to fair market for the home without any provision for providing care and I would not begin to try to advise you regarding what an equitable timeframe would be for the rent you did pay under those circumstances.
  I would suggest that you contact an attorney if you feel the amount is substantial enough to warrant legal action and if not, remain in the home if the heirs/lender allow knowing that you will ultimately be required to seek new housing.
  I am not an attorney and cannot give you legal advice and would advise you to speak with an attorney anyway to see what rights you may have even about the estate for monies paid in advance if you are forced to move soon but again, I have no idea and cannot advise you.
  Reply to Michael
Erik
January 11th, 2021

Hello Arlo,
My dad has a property and home with a reverse mortgage. He unexpectedly died last week. Unfortunately, he has a MASSIVE number of belongings in his home, garage, and large shop.
The lender is willing to let the heirs (my sister [executor], myself, and my brother) work on selling Dad's items and continuing to maintain the home so it can be sold. They will give us an initial term of 6 months to prepare the home for sale.
They also allow two possible extensions of 3 months each. I would like to move to Dad's house and live there temporarily, so I can work on selling the massive number of items, so the house can be sold.
Both my sister and brother have several children and full-time work, so it is a huge inconvenience for them to try to work through the belongings. It would also save us money, because the estate sale company would charge us about 60% to do this task.
If we are working on this process of preparing the home for sale and the lender is aware of what is happening, can I stay there under the terms of what we have arranged with the lender (selling/removing belongings and maintaining the home so it stays nice for eventual sale)?
Am I required to pay rent while I do this? The loan would continue to accrue equity from the estate and the utilities would have to remain on, to keep the home safe from weather, etc.
Regardless of whether the home was empty or temporarily occupied, the utilities would be required to remain on to protect the property and facilitate the removal, processing, and sale of Dad's belongings.
Reply to Erik
- Michael Branson
  January 11th, 2021
  
  Hello Erik,
  
  Until such time as the lender takes the home by way of a foreclosure sale, the home still belongs to dad or dad's estate.
  You most certainly can live in the property in the meantime, but I warn you, if the lender believes that your occupancy is just a move to prolong the time before the ultimate sale, it could make the additional extensions more difficult to receive.
  Eventually, if the home is not sold the lender will begin foreclosure. The reason they say they will give you six months with possible 2 - three-month extensions is because they would rather you sell the home than they take it back in a foreclosure action. If at the end of 6 months a sale appears to be imminent, they want to give you time to complete the sale.
  But if after 6 months they do not see sufficient progress taking place toward a sale, they know it will take 6 months to complete a foreclosure anyway so they will not wait another six months only to have to start a foreclosure at that time.
  So, do not wait 6 months before you even plan to have the home on the market thinking you have another 6 months to sell after that as I do not believe you would get the extensions you are counting on if the home is not being actively marketed prior to that time.
  Reply to Michael
Nicole
January 5th, 2021

Hello Arlo, my mother has a reverse mortgage on her duplex, I live in one of the units to help take care of her. Once she dies do I have a timeline that I will need to vacate the property? I am not an heir and do not plan to purchase the property but may be interested in selling it. Thank you!
Reply to Nicole
- Michael Branson
  January 5th, 2021
  
  Hello Nicole,
  
  This is a somewhat ambiguous request. The least amount of time it would take a lender to foreclose on a property that had a reverse mortgage loan is approximately 6 months between notices and legal foreclosure proceedings.
  It usually takes longer but it is difficult to say without knowing where the property is located, what participation you or other heirs will have with the lender and the market conditions at the time.
  Also, if you are not the heir, much of this is a moot point because the heir will have control of the property which will include occupancy until the property is sold or it becomes owned by the lender as result of a foreclosure action.
  They would determine if you could stay in the home or if they needed you to vacate immediately for rehab or sale purposes.
  Since the lender does not own it until it is forced to foreclose on the loan to protect its security interest, if the heir does pay off the loan or sell the home, the lender would never dictate the timeframe for your departure.
  That would be determined by the heir (which you have stated is not you) and I would not be able to say what he/she/they may have in mind for the property or its occupancy or sale.
  
  If you were the heir and did inherit the home, then you could choose to keep it or sell it at your discretion and then the timeframes would be yours to determine.
  But you need to remember that the loan would be due and payable at that time and the lender would be looking to you to give them a reasonable schedule for when you would be able to repay the loan either through funds available to you, a new loan in your name or through a sale.
  If the property was listed, lenders and HUD will typically give heirs up to 6 months with 3-month extensions at a time up to 12 months if the market warrants to sell a home as long as they feel that the home is actively being marketed at a reasonable price.
  They do not just quote that you have 12 months to sell. They need to see that you are actively marketing the home at a fair market price without restrictions if the home is listed for sale or they will begin the foreclosure process.
  Reply to Michael
Tina G.
December 15th, 2020

When a reverse mortgager lender takes the home and lists it for sale, are other tenants in the home entitled to relocation fee?
Reply to Tina
- Michael Branson
  December 15th, 2020
  
  Hello Tina,
  You can certainly check with the lender and HUD at the time the property becomes owned by the lender to see what incentives they may offer for people living in the home to relocate in certain timeframes, but I am not aware of any requirements of any new owners, lenders or otherwise, to make such a payment.
  Even if there is no requirement to make such a payment, it certainly would not hurt to ask if such assistance is available.
  Reply to Michael
  - Lee
    June 18th, 2022
    
    I'm almost 60 years old and I have lived in my house for my entire life, I took care of my grandmother until she died in my arms a few years ago. I have been waiting for someone to contact me regarding the house and how I can go about buying it, it's been in my family for 3 generations. I was told that because of covid they are back logged and it could be years especially if I have kept the house up in good condition. Everyone assured me I would I be contacted at some point. I have the money to purchase the home. I attempted to contact the number on the original paperwork the company was not in business anymore. I never got a stitch of mail, a phone call - nothing...until today! By means of a 3 day notice to VACATE!? I have no idea what to do.
    Reply to Lee
Terra E.
November 30th, 2020

We have been renting our current residence for 5 yrs. We have just been notified that our landlord has passed away and that she had a reverse mortgage on the property. What are our rights as a tenant? Or what can we expect if the house forecloses? We have 4 children in the school district and 2 dogs. The school district we live in is very hard to find rental properties.
Reply to Terra
- Michael Branson
  November 30th, 2020
  
  Hello Terra,
  
  I am sorry to hear this, but you really need to speak with an attorney to determine tenant's rights. The property never should have been rented in the first place as that is against the HUD program rules.
  Your landlord was violating HUD parameters by renting the home and had to be falsifying the annual occupancy certificate sent to the property certifying that she still lived there even though she did not.
  
  The heirs of the owner will now have the choice of whether they want to keep the home, sell it or let the lender take the property back through foreclosure. I honestly cannot tell you what your rights as a tenant would be in any of the three instances.
  The possible outcomes of the property remaining a rental could be if the heirs keep the home and continue to rent it or if they sell the home and the new owners are not looking to move into it themselves or flip it but rather buy it as a rental and wish to keep you as a tenant.
  If the property does go to foreclosure, the lender would issue a notice of eviction to secure the property. Any other purchasers could do the same if their plans for the property do not include keeping it as a rental.
  It takes a while to complete a foreclosure (usually at least 5 - 6 months and sometimes longer) so you may want to keep an eye out for alternative properties, even though they may be difficult to come by. If the heirs come in sooner, it is hard to predict the timeframe.
  But in the meantime, I would advise you to check with an attorney to determine your rights under the law.
  Reply to Michael
Linda R.
January 29th, 2020

If you a live-in caregiver and the person who has the reverse mortgage dies. How long do you have before you must leave and who has the right to evict you?
Reply to Linda
- Michael Branson
  January 29th, 2020
  
  Hello Linda,
  
  I cannot comment on the rights to evict, that is a legal matter and I cannot give you legal advice. I can tell you that the lender cannot do anything regarding the occupancy of the property until such time as the lender owns the property, if that becomes a reality.
  The property would pass to the owner's heirs or would go into default and the lender would be forced to start a foreclosure process if the heirs did not wish to repay the loan and keep the property or sell it. It would be the heirs that would have the first option to remove any occupants of the home and they would be subject to any applicable law.
  If the property went all the way through foreclosure and the lender obtained title from a Trustee's Sale, the lender would also be subject to any applicable law and again, you would need to seek advice from a local attorney to determine your rights as a tenant under the law.
  Reply to Michael

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Timeframe to Vacate Home After Reverse Mortgage

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