Legal Question in Real Estate Law in California

Re: Reverse Mortgage

Yes, you'll need to pay it off. Mortgages of all kinds, reverse or normal, are liens against the property. With a normal mortgage, it is payable in instalments, or in a lump sum upon default. With a reverse mortgage, it becomes payable upon the borrower's death, moving out, etc. The first thing to do is verify that you are the sole heir and that you have power, as a trustee or because of a probate ruling, to deal with the house and the mortgage. Next, contact the lender to determine their policies and practices regarding pay-off. It isn't required that you necessarily sell the house, but you do need to pay the loan balance if you plan to keep it, either by refinancing or paying cash from other sources. I suggest using a lawyer versed in handling estates for all this; the fees should not be high and this is pretty routine stuff for specialists in that field. Yes, the estate of a deceased person is liable for the debts the deceased left behind, and as a rule must pay them before the heirs are free to get the first nickel.