If there's a reverse mortgage, the clock is different

A reverse mortgage (usually an FHA HECM) becomes due when the borrower dies. Heirs get a window — initially about six months, with up to two 90-day extensions if they're actively selling or arranging payoff — to deal with it.

The options: repay the balance and keep the home (heirs can pay the loan balance or 95% of appraised value, whichever is less — the 95% rule matters when the loan exceeds the value); sell the home and keep any equity above the payoff; or sign a deed in lieu and walk away if there's no equity, with no recourse against heirs — HECMs are non-recourse.

The trap is passivity: the servicer's letters have deadlines, and foreclosure proceeds while a family is still deciding. If a reverse mortgage is in the picture, respond to the servicer in writing early, ask for the payoff figure and the extension requirements, and get the home valued fast — every option depends on knowing whether there's equity.

General education, not advice — verify anything you’ll rely on with a CPA or estate attorney.