Reverse-mortgaged home may be lost after death

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DEAR BOB: My mother passed away a few months ago. She willed her home, which has a reverse mortgage, valued at $570,000, entirely to my 45-year-old brother. Yes, my sister and I are not too pleased! We know he needs to refinance in order to stay in the house, as he obviously does not qualify for a senior citizen reverse mortgage. How does the bank learn of the death of a reverse-mortgage borrower? Will our brother be offered a refinanced mortgage? He doesn't work and has no income at this point so he would have to sell. --Barbara B. DEAR BARBARA: Reverse-mortgage lenders periodically verify the senior citizen homeowner is still alive and living in the residence, which is the security for the reverse mortgage. After the borrower sells the home, permanently moves out or dies, the reverse mortgage "matures" and becomes due in full. Purchase Bob Bruss reports online. When there is a sale of the property, the reverse-mortgage lender will receive a loan payoff demand. If there is a title ...