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Dwayne B.
Dwayne B., Attorney
Category: Estate Law
Satisfied Customers: 33543
Experience:  Estate Law Expert
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If a person dies and their property is on a reverse mortgage,

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If a person dies and their property is on a reverse mortgage, do the heirs which are brother and sister, need to open a probate to sell the property. The mortgage lender wants something done within 12 months

Dwayne B. :

Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification.

Dwayne B. :

If the heirs want to sell the property or pass title to anything then they would have to open a probate but if they aren't going to get anything from the sale of the property (if, for instance all of the sale proceeds go to pay off the reverse mortgage) then the lender can open one and spend the time and money.

Customer:

how do we tell the lender to open a probate, when they are stating that all they want is to be paid. The heirs can sell the property, refinance, short sell it or turn in the title in lieu of foreclosure.

Dwayne B. :

Do the heirs want the property? Is there equity in it after the reverse mortgage is paid?

Customer:

No they don't want the property and they believe that only $50,000.00 will be left after paying the loan, commission and escrow costs.

Dwayne B. :

Is there any other property that needs to go through probate?

Dwayne B. :

Other real estate, accounts, etc.?

Customer:

no, they did not have any other asset

Dwayne B. :

So there is really no need for a probate other than so the lender can get paid?

Dwayne B. :

What about the $50k left over after the house is sold?

Customer:

exactly.

Customer:

the heirs want to split the money 50/50

Dwayne B. :

If the heirs want to split the money left after the sale then they have to do some kind of probate, otherwise the lender would have to do it.

Dwayne B. :

However, they could do something other than a full probate, like an affidavit of heirship.

Dwayne B. :

Usually a debt other than a mortgage will prevent the use of an affidavit of heirship but a reverse mortgage is still a mortgage.

Dwayne B. :

What the heirs may want to do is schedule an appointment with a local attorney to get a price on an affidavit of heirship and to be sure that the local judge will allow one to be used with a reverse mortgage (some judges interpret the law differently than others).

Dwayne B. :

An affiavit of heirship is less expensive and much easier than a full probate.

Customer:

ok thanks for your help, I will let them know.

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