Florida Reverse Mortgage: Selling or Inheriting a Home With a HECM

Last updated November 14, 2026. Citations come from the Florida statutes and official agency pages linked in Sources. Where we could not confirm something on an official page, we say so.

When the last borrower on a reverse mortgage dies, the loan becomes due, and HUD gives heirs 30 days to satisfy an FHA-insured HECM, with possible 90-day extensions. This guide uses the HUD heirs flyer and the Florida facts we confirmed.

What we confirmed

• HUD guidance for inheriting a home with an FHA HECM: the loan must be satisfied within 30 days of the date of the borrower's death; the lender may approve 90-day extensions with documentation that the estate or heirs are actively trying to sell or repay. (HUD, Inheriting a Home Secured by an FHA-insured HECM (Sept. 2019))
• Heirs may sell the home for at least 95 percent of the current appraised value (the document describes the lender accepting net sale proceeds); if heirs prefer to keep the home, the HECM balance must be paid off in full. (HUD, Inheriting a Home Secured by an FHA-insured HECM)
• Heirs may transfer title to the lender by deed in lieu of foreclosure to avoid foreclosure. (HUD, Inheriting a Home Secured by an FHA-insured HECM)
• Documentary stamp tax on a home equity conversion mortgage is computed only on the principal limit available to the borrower, not the maximum claim amount or stated mortgage amount; tax on mortgages is 35 cents per $100. (Fla. Stat. Sec. 201.08(1)(b), (6))

What we could not confirm

• Eligible non-borrowing spouse protections not opened.
• No Florida statute section (the task's 'Sec. 697.??') on reverse mortgages was verified.

How to sell a house in Florida when this applies to you

1. Find out what the title company needs. For an inherited or transferred house, that usually means the recorded document that shows who owns it today.
2. Get a payoff for any mortgage and the amount of any unpaid property tax. Both are paid from the sale proceeds at closing.
3. Compare offers on what you net after repairs, commissions and closing costs, not on the headline price.
4. If you want a fast, simple closing, ask for a written cash offer. We buy houses as-is, with no repairs and no agent commission. See how we buy houses in Florida.

Florida Reverse Mortgage FAQ

How long do heirs have?

HUD says the loan must be satisfied within 30 days of the death, with possible 90-day extensions if heirs are actively selling or repaying.

Can heirs sell for less than the balance?

HUD says heirs may sell for at least 95 percent of the current appraised value, and the lender accepts the net proceeds.

Can I sell my Florida house as-is?

Yes. A cash buyer purchases as-is, and the title company pays any mortgage and unpaid property tax from the proceeds at closing.

Sources

• Fla. Stat. Sec. 201.08(1)(a)-(b)
• HUD, Inheriting a Home Secured by an FHA-insured HECM (Sept. 2019)

This guide is general information, not legal or tax advice. Laws, forms and fees change, so confirm details with the official office or a Florida Florida attorney or tax professional.