What Heirs Should Know Before a HECM
A Clear-Eyed Guide for Adult Children
JP Dauber · Licensed HECM Specialist
NMLS# 386298 · Published September 16, 2026
You are not personally liable
A common fear among adult children is inheriting a debt. With a reverse mortgage, you do not. The loan is secured by the home, not by you, and it is non-recourse.
That means neither your parent's estate nor you can ever owe more than the home is worth when it is sold.
Your options when the time comes
When the last borrower passes or permanently moves out, the loan becomes due. Heirs generally have three paths: sell the home and keep any equity above the balance, keep the home by paying off the loan, or sign it over if there is no equity worth keeping.
If the balance is higher than the value, non-recourse means you can satisfy it at 95% of the appraised value or simply walk away — no other assets are touched.
The timeline to act
After the loan becomes due, heirs typically have six months to act, with the possibility of extensions up to a year if you are actively selling.
The servicer will send notices. Responding promptly and keeping in touch with them is the single best thing you can do to keep the options open.
Key fact
Heirs are never personally responsible for a reverse mortgage balance. Because the loan is non-recourse, the worst case is handing back a home that's worth less than the loan — your own savings and assets are never at risk.
How to stay informed now
Ask your parent to keep loan documents somewhere you can find them, and to add you as an authorized contact with the servicer if they are comfortable. Knowing the servicer and rough balance now saves scrambling later.
Consider joining the counseling session so you hear the same explanation your parent does.
Have the conversation early
The families who handle this best talk about it before there is any urgency. Understanding the plan together turns a stressful future moment into a simple, expected process.
Want a plain-language overview to share with your parent and siblings? Reach out and I will walk your family through it together.
Keep reading
The complete guide
Heirs & Inheritance →
Settling a Reverse Mortgage After Both Parents Pass →
A practical, step-by-step guide for heirs settling a reverse mortgage — notifying the servicer, the due-and-payable letter, the appraisal, timelines, and your choices.
Reverse Mortgages, Step-Up Basis, and Your Estate →
When heirs inherit a home, they get a stepped-up cost basis that can erase decades of capital gains. A reverse mortgage doesn't change that. Here's how the two interact.
Helping a Parent Apply With Power of Attorney →
Can you handle a parent's reverse mortgage with power of attorney? Often yes — here's what kind of POA is needed, what the lender checks, and how counseling works.
When One Heir Wants to Keep the Family Home →
A reverse mortgage comes due, but one sibling wants to keep the house. Here's how to pay off the loan, buy out other heirs fairly, and avoid family conflict.