By Tyler Plack
Tyler Plack is the President of South River Mortgage. Tyler holds an active FHA Direct Endorsement (DE) underwriting certification and is the author of The Retirement Solution: Maximizing Your BenefitTyler is a seasoned entrepreneur and real estate investor renowned for his expertise in reverse mortgages and his commitment to addressing seniors' equity challenges. Tyler brings a unique perspective to his ventures, having built several successful companies throughout his career. His insights are frequently sought by industry publications, where he is recognized for his vast knowledge in the realm of reverse mortgages.
An avid investor in income-producing properties, Tyler is dedicated to helping seniors navigate their financial needs with compassion and expertise. When Tyler is not helping solve America's retirement crisis, he is a skilled pilot flying airplanes for fun.
When emotions are high, clear answers matter even more.
If your parent has a reverse mortgage and is terminally ill, you may be trying to prepare before calling the servicer. That’s smart. Doing your homework always helps.
Here’s the core question:
If your father passes away, can you move into the home and simply start making payments on the reverse mortgage like a normal mortgage?
Or do you have to refinance it into a new loan?
Let’s walk through this calmly and clearly.
First: A Reverse Mortgage Is Not a Regular Mortgage
A reverse mortgage does not work like a traditional loan.
There are no required monthly principal and interest payments while the borrower is alive and living in the home.
Instead, the balance grows over time. Interest and fees are added to the loan.
The loan becomes due when:
- The last borrower passes away
- The last borrower permanently moves out
- The home is sold
That’s written into the contract.
If Your Father Is Still Alive
If your father is still living in the home, the reverse mortgage remains active.
If you have Power of Attorney, you can communicate with the servicer on his behalf.
You can make voluntary payments toward the loan balance while he’s alive. Reverse mortgages do allow voluntary repayments. But those payments do not convert it into a regular mortgage. They simply reduce the balance.
The loan structure does not change.
What Happens After He Passes Away?
Once the last borrower passes away, the reverse mortgage becomes due and payable.
At that point, heirs typically have a limited window of time to resolve the loan. This usually involves one of two options:
Option 1: Sell the Home
Sell the property and use the proceeds to pay off the reverse mortgage.
If there’s equity left after payoff, that goes to the heirs.
If the home is worth less than the loan balance, heirs are not personally responsible. Reverse mortgages are non-recourse loans.
Option 2: Refinance the Loan
If you want to keep the home, you must pay off the reverse mortgage.
That usually means getting a new traditional mortgage in your name.
You cannot simply “step into” the reverse mortgage and start making payments the way you would with a normal mortgage.
The reverse mortgage contract does not allow assumption by heirs.
Does Ownership Make It Easier to Get a New Mortgage?
Being on title does not automatically convert the reverse mortgage.
However, if you legally own the property, that does simplify the refinance process. The lender will look at:
- Your income
- Your credit
- Your debt
- The value of the property
The fact that the asset is yours helps with collateral, but you still must qualify for the new loan under standard lending rules.
Are You Eligible for a Reverse Mortgage?
(Find out in 60 seconds)
Can You Just Move Back In?
Moving back into the home does not stop the reverse mortgage from becoming due after the borrower passes away.
Reverse mortgages have an occupancy requirement tied to the borrower, not to heirs.
Once the borrower is gone, the loan must be satisfied.
Living there does not reset the loan.
What If You Want to Prepare Now?
If your father is still alive, you can:
- Request a current payoff statement from the servicer
- Confirm the loan balance and interest rate
- Review the loan documents carefully
- Speak with a lender about refinance options ahead of time
Planning ahead reduces pressure later.
You’re right to research before calling the servicer. Information is power.
The Bottom Line
You cannot convert a reverse mortgage into a traditional payment loan after the borrower passes.
If you want to keep the home, you will need to refinance the reverse mortgage into your own loan.
If you don’t want to refinance, the home will need to be sold to satisfy the balance.
Ownership questions matter legally, but they do not change how the reverse mortgage contract works.
Final Thoughts
When a parent is terminally ill, financial questions feel heavier.
You’re not just thinking about paperwork. You’re thinking about your family, your home, and your future.
Take this one step at a time.
Get the payoff numbers. Explore refinance options. Understand the timeline.
If you’d like to see what a refinance might look like — or understand how much equity may be available — the easiest next step is to look at the numbers.
You can check your eligibility and get an instant estimate using our free calculator.
There’s no pressure and no obligation.
Just clear information so you can make the right decision during a very difficult time.
Get your instant quote today and see what may be possible.
