30-day clock

Inherited a house with a HECM reverse mortgage — the 30-day clock for PA heirs

Name: ABE Homes
Telephone: (484) 895-1352
Price range: $$

If a parent passed and had a reverse mortgage (HECM), you're here because someone — the loan servicer, your estate attorney — finally told you the clock is running. Let's talk honestly about what you have 30 days to do, the 6–12 months that follow, and why the HECM timeline is different from normal Pennsylvania probate.

First thing to know: there's a clock

A reverse mortgage (technically "HECM" — Home Equity Conversion Mortgage, an FHA-insured loan) has a unique feature traditional mortgages don't: when the last surviving borrower dies or permanently moves out, the loan becomes "due and payable." Heirs have exactly 30 days to respond to the loan servicer after receiving notification. If you don't respond, the servicer starts the foreclosure process. This is NOT like a traditional mortgage where heirs can just keep making payments.

Your 3 real options as an heir

After the initial 30 days, you have 3 options under HUD rules: (1) Pay the full mortgage balance to keep the property — heirs can refinance using their own credit, (2) Sell the property and use proceeds to pay off the mortgage — surplus is yours; if the property sells for LESS than the balance, you do NOT owe the difference (HECMs are non-recourse loans), (3) Hand the property to the servicer via deed-in-lieu and walk. If the mortgage is greater than the home's value, selling for at least 95% of appraised value (a "short payoff") is the cleanest exit.

The extensions most heirs don't ask for

After the initial Due and Payable notice, you have 6 months to sell or pay off. But — and this is what most heirs don't know — you can request 90-day extensions, up to 2 extensions for a total maximum of 12 months. Request in writing to the servicer and include evidence the property is actively listed or in progress. Servicers generally approve. Do NOT wait until day 175 to ask — request the first extension at 4–5 months.

Why a cash sale is often the right answer

If the property needs significant repairs (very common with HECM houses — older borrowers often couldn't maintain it in the last years), a traditional listing requires months of repairs to qualify for the buyer's mortgage. That burns your 6–12 month HECM timeline. A cash sale to a legitimate buyer closes in 7–14 days, pays the servicer directly, and delivers any surplus equity to heirs. ABE Homes does this routinely in Pennsylvania — Mike Sup is an InterNACHI Certified Professional Inspector, walks the property and writes the firm offer, no third-party inspector revisions.

Pennsylvania-specific: probate + HECM don't contradict

Heirs often worry they need to wait for PA probate to fully close before they can sell — that's 6–12 months through the Register of Wills, which is typically LONGER than the HECM clock. Good news: you don't have to wait. The estate's executor can sell the property mid-probate with appropriate court approval (Petition to Sell Real Estate). We coordinate directly with your estate attorney on this — combining a HECM sale + probate is something we've done many times.

Key deadlines

Days 1–30:: Receive "Due and Payable" notice. Must respond in writing to the servicer with intent: pay off, sell, or hand over.
Months 1–6:: Initial window to sell or pay off. A cash sale closes within this period.
Months 4–5:: Request first 90-day extension from servicer (written + evidence of active listing).
Month 9:: Request second 90-day extension if still needed.
Month 12:: Absolute deadline. After this the servicer can start foreclosure.

Your next steps

Written by

Mike Sup

InterNACHI Certified Professional Inspector · #21032009 · speaks English & Spanish

Ready When You Are

Let's Talk AboutYour Options

Whether you're ready to sell today or just exploring your options, we're here to help. Get a free, no-obligation cash offer and decide on your own timeline.

What you get with ABE Homes:

Fair cash offer— Based on real market data

Close on your timeline— 7 days or 60 days — you choose

Zero fees or commissions— We pay all closing costs

No repairs needed— Sell completely as-is

Mike was straightforward from the start. No pressure, just a fair offer. We closed on our timeline and it was exactly what we needed.

Sarah T., Bethlehem

Serving Lehigh Valley homeowners since 2009

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Inherited a house with a HECM reverse mortgage — the 30-day clock for PA heirs

First thing to know: there's a clock

Your 3 real options as an heir

The extensions most heirs don't ask for

Why a cash sale is often the right answer

Pennsylvania-specific: probate + HECM don't contradict

Key deadlines

Days 1–30:

Receive "Due and Payable" notice. Must respond in writing to the servicer with intent: pay off, sell, or hand over.

Months 1–6:

Initial window to sell or pay off. A cash sale closes within this period.

Months 4–5:

Request first 90-day extension from servicer (written + evidence of active listing).

Month 9:

Request second 90-day extension if still needed.

Month 12:

Absolute deadline. After this the servicer can start foreclosure.