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What to Do in the Event of a Loved One’s Passing

Please accept our condolences for the loss of your loved one. We want to help you during this difficult time by providing information on the next steps to take on your loved one’s reverse mortgage.  

When the last remaining borrower (or eligible non-borrowing spouse) passes away, the terms of a reverse mortgage trigger what is called a “due and payable” event. If you’re in this situation as an heir or executor of the estate, we will help you through the process to know your options and the best course of action for your situation.  

The first item to address is to notify us of your loved one’s passing, and to provide the necessary documentation so that we can discuss their reverse mortgage with you. Here are the documents that we typically request to update the account: 
  • A copy of the death certificate 
  • Documents verifying any probate proceeding, such as a copy of a court appointment of an executor, administrator, or personal representative of the borrower’s estate 
  • Copies of letters testamentary or letters of administration
  • A copy of any trust agreement and appointment of trustee
  • Documents related to any efforts to sell the property 
Please note that some of these documents may not be applicable to your situation. Email us any applicable documents to CustomerAssist@PHHReverse.com.

Once we are notified of your loved one’s passing, we will mail you a letter outlining the amount owed on the reverse mortgage and the options available in your situation along with the requirements to resolve the debt.
These options may include:
  • Paying the account balance in full with personal funds, a different loan, life insurance proceeds, or other funds.
  • Selling the property and paying off the mortgage at less than the outstanding balance. This is known as a short sale. A short sale is subject to the terms of the mortgage and prior approval from the investor or owner of the mortgage.
  • Signing the property over to the investor (subject to investor approval). This is known as a deed in lieu. The title must be clear of any liens or encumbrances, the property must be clear of all personal belongings and, if all borrowers are deceased, an authorized representative for the Estate must be appointed to convey the title.   
  • Allowing the property to be foreclosed upon.
You or your heirs will have 30 days to respond to this letter indicating which option is preferred.  Depending on the option chosen, additional extensions of time may be available if consistent and timely updates and documentation are provided that support efforts to sell the home or pay off the mortgage. You or your heirs will receive periodic correspondence and phone calls to help determine the status and progress of those efforts.
We understand that this can be a challenging time however it is in your and your heirs’ best interest to provide updates to us regularly as we want to help resolve the debt as easily and quickly as possible.

Our agents are ready to assist you with further questions.