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Does a Reverse Mortgage Go Through Probate in Texas? (2025 Guide)

Reverse mortgages can be a helpful way for older homeowners to access cash without selling their home—but what happens when the borrower passes away?

If your parent or loved one had a reverse mortgage, you might be wondering:

Will the house go through probate? Who pays the loan back? Can we keep the home?

Let’s break it all down step-by-step.

What Is a Reverse Mortgage?

A reverse mortgage is a type of loan available to homeowners age 62 or older. It allows them to convert home equity into cash, without making monthly payments.

The loan balance grows over time and doesn’t need to be repaid until:

• The borrower dies

• The home is sold

• The borrower moves out permanently (e.g., to a nursing home)

Most reverse mortgages in Texas are Home Equity Conversion Mortgages (HECMs), which are federally insured.

What Happens When the Borrower Dies?

When the last borrower passes away:

• The reverse mortgage becomes due and payable

• Heirs or the estate have several options:

  • Pay off the loan and keep the home

  • Sell the home to repay the loan

  • Walk away (the lender will foreclose)

So the question isn’t whether the reverse mortgage goes through probate—it’s whether the home goes through probate.

Does the Home Go Through Probate?

That depends on how the title was set up:

1. If the Borrower Had a Will

The will must go through probate before the home can be legally transferred to heirs. The executor can then:

• Sell the home to repay the loan

• Transfer the home to an heir who pays off the loan

2. If There Was No Will

The property passes under Texas intestacy laws. Probate is still required to:

• Determine heirs

• Appoint a personal representative

• Handle the reverse mortgage payoff or foreclosure

3. If the Home Was in a Trust

If the home was placed in a revocable living trust, it may avoid probate entirely. The successor trustee can manage the sale or payoff of the loan directly.

Key Point: The Lender Can’t Sell the Home Right Away

The lender doesn’t automatically get the home when the borrower dies.

Federal law gives heirs at least 6 months (often extendable to 12 months) to:

• Pay off the reverse mortgage

• Sell the home and repay the loan from proceeds

• Refinance with a new loan (if they want to keep the house)

This gives families time to make decisions—but it’s important to act quickly.

What Happens If No One Acts?

If the estate doesn’t sell or pay off the loan within the allotted time, the lender can initiate foreclosure.

Once the home is foreclosed, it will be sold to cover the debt. Any remaining equity (if any) goes to the estate.

Real-Life Example: Avoiding Foreclosure Through Probate

David’s mother had a reverse mortgage on her Fort Worth home. After she passed, David filed for probate and was appointed executor. He worked with a realtor and sold the home within 8 months, paying off the loan and keeping the extra proceeds.

Because the home was in her name alone, he had to go through probate before the title company could clear the sale.

How to Avoid Probate with a Reverse Mortgage

If you want to help your heirs avoid probate complications:

• Consider putting the home in a revocable living trust

• Use a Transfer on Death Deed (TODD) to name a beneficiary

• Keep beneficiaries and co-borrowers updated

⚠️ Important: Most reverse mortgages must be in the name of the borrower only, so placing the home in a trust or using a TODD needs careful planning with an attorney.

How The Lange Firm Can Help

We help Texas families:

• Navigate probate when a reverse mortgage is involved

• Sell or transfer real estate tied to a reverse mortgage

• Plan ahead with trusts and TODDs to avoid probate in the future

We’ll walk you through the process and help protect the equity your loved one left behind.

Final Takeaway

A reverse mortgage doesn’t go through probate—but the house likely will, unless you plan ahead.

If your loved one passed away with a reverse mortgage, you’ll need to:

• File probate (unless the home is in a trust or TODD)

• Appoint someone to act on behalf of the estate

• Pay off or sell the home before foreclosure

Contact The Lange Firm to help you evaluate your situation and take the right steps to preserve your family’s home and legacy.