When you die, the balance on your reverse mortgage becomes due. As soon as the lender becomes aware of the death (either by monitoring death records/Social Security records or if they are notified by an heir), they will send out a payment due notice. Your heirs would then have 30 days to pay off the balance, sell the home or forfeit the property to the lender. In some cases, heirs may be able to request an extension for up to a year.