IRVINE, Calif. - TelAve -- Lawyers Realty Group published a new California consumer advisory addressing what happens when a reverse mortgage becomes due after the borrower passes away and the loan balance exceeds the value of the home.

Reverse mortgages are marketed as a way for older homeowners to access home equity without making monthly mortgage payments. But after the borrower dies, the loan becomes due and payable. Heirs then face pressure to repay the balance, sell the property, or deal with foreclosure.

The advisory explains that the issue becomes especially difficult when the reverse mortgage has been in place for many years. Because interest and fees are added over time, the payoff demand may exceed the home's current market value.

"When a parent passes away, many families are surprised to learn how quickly a reverse mortgage can become a foreclosure issue," said Derik N. Lewis, attorney and real estate broker with Lawyers Realty Group. "Heirs may still have options, even when the home appears to be underwater."

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According to the advisory, heirs should promptly determine the current payoff amount, the estimated market value of the home, whether foreclosure has started, and who has legal authority to communicate with the servicer or sell the property. When the home is worth less than the reverse mortgage balance, a short sale may be available if the lender or servicer agrees to accept a reduced payoff.

A reverse mortgage short sale can allow the property to be sold for less than the full amount owed, potentially avoiding foreclosure and resolving the loan through an approved sale. The advisory notes that this option is often misunderstood by heirs who assume that an underwater reverse mortgage leaves them with no practical path forward. In many reverse mortgage short sales, the lender pays approved sale costs and fees through closing.

"The most important point is that families should not ignore lender notices or wait until the foreclosure process is too advanced," Lewis said. "The earlier the heirs evaluate the payoff, title, authority to sell, and possible sale options, the more likely it is that a structured resolution can be pursued."

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Lawyers Realty Group published the advisory to help California heirs, trustees, and surviving family members identify key questions before deciding whether to sell, negotiate, request more time, or allow a foreclosure to proceed.

About Lawyers Realty Group
Lawyers Realty Group is a California real estate and legal services firm led by an Attorney/Realtor. The firm assists California homeowners, heirs, and families with complex real estate matters involving foreclosure, short sales, reverse mortgages, probate sales, title problems, judgment liens, and other property-related disputes.

Media Contact:
Lawyers Realty Group
Irvine, California
Phone: (949) 613-5918
Website: www.lawyersrealtygroup.com