Will my heirs inherit debt?

No. HECMs are non-recourse. Heirs are never personally liable for more than the value of the home at the time the loan is repaid.

Can my heirs keep the home?

Yes. Heirs can pay off the loan balance (or 95% of appraised value, whichever is less) and keep the home. They commonly do this by refinancing into a traditional mortgage.

How long do heirs have to decide?

Initially 30 days to notify the servicer of intent, then up to six months (with two possible 90-day extensions for active progress) to sell or pay off the loan.

What if the loan balance is higher than the home value?

Heirs can convey the home to the lender via deed-in-lieu and walk away with no further obligation. FHA insurance covers any shortfall — that is what the MIP funds.

Do heirs get any remaining equity?

Yes. After the loan is repaid from sale proceeds, every remaining dollar of equity belongs to the heirs.

What if a spouse is not on the loan?

Eligible Non-Borrowing Spouses can typically remain in the home after the borrowing spouse passes, subject to specific federal occupancy and property-charge requirements.

Reverse Mortgage & Heirs | What Really Happens in Utah

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By Tres Miller · Mortgage Lender · NMLS #217768

Reviewed June 22, 2026 · 25+ years lending in Utah

The non-recourse protection

Every HECM is a non-recourse loan. That means neither the borrower nor the heirs can ever owe more than the home is worth at the time the loan becomes due. This protection is the entire reason for the upfront FHA mortgage insurance premium — the insurance covers any shortfall between the loan balance and the home's value.

What heirs actually do, step by step

Notify the loan servicer (or have an attorney do so). The servicer pauses, then issues a "due and payable" letter.
Decide among three options: pay off and keep, sell, or convey via deed-in-lieu.
If keeping: refinance into a traditional mortgage or pay the lesser of the loan balance or 95% of appraised value.
If selling: list the Utah property, pay the loan off at closing, retain any remaining equity.
If conveying: deed-in-lieu transfers the home to the lender; no deficiency.

Timelines

Heirs generally have an initial 30 days to respond, then up to six months from the loan becoming due, with the possibility of two additional 90-day extensions granted by HUD when active progress is being made (such as a listed property or pending refinance). Communication with the servicer matters — heirs who go silent lose flexibility.

The Utah-specific reality

In St. George and other appreciating Utah markets, heirs frequently find the home has appreciated faster than the loan balance has grown — meaningful equity remains. In flat or declining areas, the non-recourse protection is the safety net. Tres encourages every Utah borrower to bring adult children into the initial consultation, so the family understands the program before the loan ever funds.