Cape Coral, FL asked in Foreclosure and Estate Planning for Pennsylvania

Q: are the heirs responsible for a reversed mortgage after parents die ? If there was no money in the estate.

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2 Lawyer Answers
W. J. Winterstein Jr.
W. J. Winterstein Jr.
  • Foreclosure Defense Lawyer
  • Boyertown, PA
  • Licensed in Pennsylvania

A: Directly, no, unless one or more of the heirs has signed a guarantee with the provider(s) of health care for the deceased.

An argument may be made by the creditor, however, for heir-liability, in the absence of a guaranty, if any of the heirs claimed the decedent as a dependent during life. And there are cases out there that impose liability of a de facto (non-tax) dependent where the creditor provides "necessities".

Keep in mind that a creditor of the deceased my push its claim against the decedent's estate, and the heirs my suffer a loss if estate assets are liquidated to pay claims against the estate.

Liu "Margaret" Yang
Liu "Margaret" Yang
  • Foreclosure Defense Lawyer
  • Plantation, FL

A: The heirs aren't personally responsible, but the property is.

Typically after the passing of a borrower with a reverse mortgage, there are 3 options:

- Heirs purchase the property and/or refinance the loan to pay off the mortgage

- The estate sells the property if there's equity

- The reverse mortgage lender forecloses and the estate has no more liability

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