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What happens to reverse mortgage after parent's death

By Marcie Geffner - Bankrate

As more seniors turn to reverse mortgages, their adult children might well be puzzled or concerned about what will happen to that debt when one or both of their parents eventually dies. At that time, questions about how to pay off the loan will need to be resolved -- and relatively quickly.

Nearly all reverse mortgages today are home equity conversion mortgages, or HECMs, which are insured by the Federal Housing Administration. HECMs are subject to certain rules that might not apply to non-HECMs.

The first thing adult children should know about HECMs is that these reverse mortgages technically become due and payable when the borrower dies.

Read on:
http://www.bankrate.com/finance/mortgages/pay-reverse-mortgage-after-parent-dies.aspx

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