A reverse mortgage becomes due when you move, sell, or pass away. Heirs and surviving homeowners often face strict timelines. Jay Buys Houses buys Long Beach homes with reverse mortgages and handles the servicer payoff coordination entirely.
A HECM (Home Equity Conversion Mortgage) becomes due and payable when: the last surviving borrower sells, moves out permanently, passes away, fails to maintain the home, or defaults on property taxes or insurance. The servicer then issues a 'Due and Payable' notice with a deadline to sell or pay off the balance.
When a homeowner with a reverse mortgage passes away, heirs typically have 6 months to sell or refinance the property (with two possible 90-day extensions). Selling to a cash buyer is often the fastest path — no repairs, no listing period, and proceeds go to heirs after the reverse mortgage balance is satisfied.
At closing, your escrow company obtains the reverse mortgage payoff balance from the servicer (typically the full loan balance or 95% of current appraised value, whichever is less). This is paid at closing. Any equity above the payoff goes to you or your heirs. You never owe more than the home is worth.
Jay Buys Houses has experience navigating reverse mortgage sales, including the specific documentation servicers require, the payoff calculation process, and the timing constraints that heirs and surviving spouses face. We work within these timelines and can close before a servicer-initiated foreclosure.
Free cash offer in 24 hours. We respond in 5 minutes. No obligation ever.