How long doesit take for a bank to take over the house of someone dead with a reverse mortgage?

Question

Grandmother passed away. Eldest child left to deal with all of her finances. Grandmother had a reverse mortgage. how long do they have until the bank takes over the house. We are in debate over wether or not the person left to deal with the finances has even reported her dead. how long would it take for the bank to take over th house of a dead person with a reverse mortgage?

Answer 1

Once they find out your grandmother has passed away they will expect that her estate will pay off the mortgage or they will foreclose on the house.

It probably depends on your state but I bet you would have about six months.

I am sure you are aware that the reverse mortgage is likely a non-recourse loan meaning that the bank will not come back against the estate for any shortfall.

Answer 2

The bank does not "take over" the house.  The executor has the obligation of paying off the mortgage usually by selling the property and using the proceeds to pay back the mortgage.

Answer 3

The balance due the bank needs to be paid, that is all.   They only foreclose if you do not pay the mortgage off.

Not paying it off is fraud, and you need a criminal defense attorney to help you with that one.   The banks are very aggressive about protecting their interest.

The daughter can rent out the house, as long as all heir agree to it.

Answer 4

Bank doesn't own the house, Gram's estate does.  Bank only has a mortgage on the house, much like any other mortgage, except that payments were made to Gram instead of by Gram.  The executor of her estate generally will sell the house, which pays off the mortgage, and then the rest of the sales proceeds go to Gram's heirs.  Or alternatively, one or more of her heirs pays off the mortgage and buys out other heirs.

Did Gram leave a will?  Did she hold title in her name alone?

Does Gram have any other assets?

If you are the responsible person, suggest you get attorney to help in settling estate.