Will a reverse mortgage continue to accrue interest even during probate?

Russc asked...

If parent signs up for a reverse mortgage and then after 5+ years, passes away, does the loan still accrue interest even during probate? If so, how and when do the heirs know how much of a payoff there is? Is there something that needs to be addressed upfront to avoid problems later on?

Expert Answer

Liza Hanks is the founder and owner of FamilyWorks Estate Planning, a law firm with offices in Campbell and Los Altos, California, and the author of The Busy Family's Guide to Estate Planning (Nolo, 2007).

You should discuss this with the reverse mortgage lender, as terms and conditions will vary.  

Generally, though, the interest on a reverse mortgage is due when the house is sold, so if there's a time delay between the death of your parent and the sale of the house, the estate is responsible for the increased interest on the loan, just as it would be for any mortgage payments due on a traditional mortgage.