What happens if you inherit a house with a reverse mortgage, can the heirs keep it?

Both when making a will and receive an inheritancea series of doubts, both with the procedures to be carried out and with the assets that are included in the inheritance. A fairly common one isWhat happens to a home that has a reverse mortgage?

The first thing is to clarify What exactly does a reverse mortgage consist of?that like him Bank of Spain explainses “a loan that allows people over the age of 65 to obtain liquidity thanks to the value of a property without burdens, without having to sell or abandon the home”. Its operation is the opposite of a normal mortgage, with the bank providing money to the client for the value of the home, which is normally made in monthly payments.

For this reason, it is normal to wonder that when the person who receives the money from the reverse mortgage dies, What will happen to the home and the heirs?Can you keep it? Does the bank keep it? Do they have to pay something?

What happens to the inheritance if the inherited home has a reverse mortgage?

To the heirs who receive a home with this type of mortgage,The property also corresponds of the same, as explained by the General Council of Notaries, but it must be taken into account that They will have to return to the bank all the money they had advanced to the deceased who was the holder of the reverse mortgage plus the interest that has accrued, having as an option the sale of this asset to be able to pay the payment.

In the event that you do not want to make the payment to retain ownership of the home, There is the option of handing over the property to the bank as a means to face the debt, since, as this organization explains, heirs do not have to respond to debts with their pre-existing assets.

Other points to take into account when inheriting debts

As a result of the consultation on these mortgages, the Council of Notaries has taken the opportunity to clarify some issues regarding debts and inheritances, and that is the possibility of accepting the inheritance for the benefit of inventory.

Thus, The heir will respond to the debts with the assets that have been inheritedso if the amount of the debt is greater than that of the goods received, they would not have to pay the difference, but if the amount owed is less than said goods, they will be able to receive the remaining amount after paying it off.