Green Tree Realty: Chesapeake, Virginia Beach & Norfolk | Virginia Beach Seniors Real Estate & Probate assistance
Senior Real Estate & Housing Specialists
One of the most common questions I get from families who inherit a home with a reverse mortgage is: What happens next? In Virginia, navigating a reverse mortgage after a loved one passes can be complex. The loan becomes due, and heirs must decide whether to keep the home, sell it, or explore other options. Understanding the timeline and legal responsibilities is crucial to avoiding foreclosure and making the best financial decision.
📹 Watch this quick video where we break down the essential steps when inheriting a home with a reverse mortgage. Learn about repayment options, deadlines, and how to maximize the value of the estate. Don't let unexpected challenges catch you off guard—get the facts now!
Introduction: Who I am & today’s topic hi I'm Sean schroer a certified senior's professional with green tree real estate I help families navigate the challenges of probate and estate real estate today we're talking about what happens when you inherit a home with a reverse mortgage this video is brought to you by hook law specialist in Elder Law and What happens when you inherit a home with a reverse mortgage? estate planning throughout hon roads if you're facing the situation and aren't sure what to do next this video is for you a reverse mortgage allows homeowners 62 and older to tap into their home's Equity while staying in the home but when the last borrower passes away the loan becomes due if you've inherited a home with a reverse mortgage you'll need to act quickly to avoid foreclosure once the homeowner passes Understanding your options: keep it, sell it, or deed-in-lieu the lender will send a due and payable notice you typically have 30 days to respond and up to 6 months to resolve the loan with possible extensions you have a few options you can pay off the loan sell the home or hand it back to the lender through a deed in Le of foreclosure if you want to keep the home you'll need to pay off the loan balance that balance is either the loan amount or 95% of the homes of Praise value Keeping the home: What you need to know whichever is lower this is where working with an estate attorney like the team at hook law can help you navigate financing and legal considerations if keeping the home isn't an option selling is often the best way forward as a certified senior professional I work with families in these situations to get the home sold efficiently and for the best possible price if the sale price is higher than Selling the home: How I can help & what to expect the loan balance the remaining Equity goes through the estate or the errors if the home sells for Less you won't have to cover the difference the reverse mortgage is known as a non-recourse loan meaning the lender can't come after other assets the key is acting quickly to avoid unnecessary complications ignoring the lender's notice will lead to foreclosure which means losing any equity in the home if you're dealing with a situ situation don't wait contact What happens if you do nothing? hook law to discuss your options and to protect your family's assets and if selling is the right choice for you I I'm here to help guide you through the process if you've inherited a home with a reverse mortgage and you need guidance reach out to a hook law for legal advice and if you need help selling or managing the real estate side of things I'd be happy to assist thanks for watching subscribe for more insights on Closing thoughts & next steps navigating inheritance and estate
In Virginia, inheriting a home with a reverse mortgage comes with important financial and legal decisions. When the homeowner passes away, the loan becomes due, and the lender will require repayment. Heirs must act quickly to avoid foreclosure and determine the best course of action.
According to Hook Law (Blog post), there are several options for handling a home with a reverse mortgage:
It’s critical to understand that reverse mortgages are non-recourse loans, meaning heirs are not personally responsible beyond the home's value. However, failing to act within the lender's timeline can lead to foreclosure.
If you've inherited a home with a reverse mortgage, don’t delay. Contact the loan servicer immediately to understand repayment deadlines and available options. In many cases, working with an experienced Virginia estate planning attorney can help ensure a smooth process.
Additionally, if you decide to sell the home, I can assist with preparing the property for sale, negotiating with the lender, and maximizing the value of the estate.
As a Certified Seniors Professional (CSP) with Green Tree Real Estate, I specialize in assisting seniors and their families with complex real estate decisions, including selling homes with reverse mortgages. Whether you need guidance on your options or help navigating the sale process, I’m here to provide expert support.
📞 Let’s discuss your unique situation—contact me today!