Inherited a Kane County, IL House With a Reverse Mortgage? Your Options and Deadlines

Who's writing this guide?

I’m Brad Esposito with Family Property Buyers in St. Charles. If a parent’s house in Kane County had a reverse mortgage, the letters from the servicer can feel like a countdown while you’re still grieving. You’re the one making the decisions here. My job is to help you see the options clearly.

Which question brought you here?

• How long do heirs have to deal with a reverse mortgage?
• Can I sell an inherited house that has a reverse mortgage?
• What if the reverse mortgage is more than the house is worth?
• Who pays property taxes while the house is being sold?
• Do I need probate to sell the house?

What happens to a reverse mortgage when the borrower dies?

For the most common type, the FHA-insured Home Equity Conversion Mortgage (HECM), the loan becomes due after the last borrower dies (and after any co-borrower or eligible non-borrowing spouse). HUD says the estate or heirs can pay off the loan, sell the home, or transfer title to the lender through a deed in lieu of foreclosure.

How much time do heirs have?

HUD says the loan must be satisfied within 30 days of the borrower’s death, and the lender may approve 90-day extensions with documentation that the estate or heirs are actively trying to sell or repay. The CFPB says heirs have 30 days after they receive the lender’s due-and-payable notice, and the timeline might be extended up to six months. A HUD-approved housing counselor or an attorney can explain your options. Ask the servicer, in writing, what your deadlines are.

What if the house is worth less than the loan?

Per HUD, if the loan balance is more than the house is worth, the estate or heirs can sell for at least 95 percent of the current appraised value, and the lender accepts the net proceeds to satisfy the loan. The CFPB says the rest is covered by the loan’s mortgage insurance. If the house is worth more than the balance, the CFPB says heirs can sell, repay the loan and keep the difference.

Who pays taxes and insurance in the meantime?

HUD says property taxes and insurance remain the estate’s responsibility until title is transferred. Kane County tax bills are paid to the Kane County Treasurer, 719 S. Batavia Ave., Geneva.

Does probate come into it?

Sometimes. Who can sign for the house depends on how it was titled and whether there’s a will or an open estate. Kane County probate cases are heard at the Kane County Courthouse, 100 S. Third St., Geneva. A probate attorney can tell you who has authority to sell. A HUD-approved housing counselor can also walk you through the reverse mortgage side at no cost.

What if selling is the cleaner path?

If you decide to sell, the house can stay as it is. You don’t have to clear out every room or fix anything first.

We buy as-is: no showings, no repairs needed. Selling directly to us means you don’t list with an agent.

We can often cover closing costs. Every cost explained up front, before you sign anything.

What happens if you reach out to us?

1. Tell me about the house. Use the form, call or text (331) 422-3828, or email [email protected].
2. We look at the house together, in person or by phone.
3. You get a written cash offer within 24 hours of our first visit or meeting. There’s no obligation. Show it to your attorney or family before you decide.
4. If you say yes, we close on your timeline.

Who would you be working with?

Family Property Buyers is based in St. Charles. If you want the step-by-step version first, read how it works.

Call or text (331) 422-3828 · [email protected] · 200 W River Dr, St. Charles, IL 60174

What else might help?

• Family Property Buyers home
• How it works
• Seller FAQ
• Areas we serve
• How to check out a cash home buyer
• Inherited a house in Kane County?
• Inherited house with liens or no probate
• Siblings disagree about an inherited house
• Selling a home to pay for senior care