The first thing that usually happens is a letter or a call from the servicer. They may not know your parent has died yet, so tell them. Ask what they need from you. Usually that means a copy of the death certificate and proof that you are the heir, executor, or whoever is handling the estate. Keep a record of who you talked to and when. Send things the way they ask, and keep copies.
After that, the loan can be called due and payable. That is the general term. It does not mean someone shows up at the door tomorrow. It means the servicer is starting a process. In broad terms, the loan becomes payable because the borrower died and the home is no longer their principal residence. There are protections for certain heirs and for spouses, but whether they apply to you depends on the situation, so do not guess. This is a good time to talk to a HUD-approved housing counselor. They are free or low cost and they know these loans.
You generally have some paths. You can buy the house by paying off the loan or what the home is worth, whichever is less, if that option fits your situation. You can sell the house and use the proceeds to pay the loan. Or you can hand the house back to the lender instead of selling it. Each path has its own steps and its own tax and estate consequences. A CPA can help with the tax side. A lawyer can help with the estate and the paperwork. The county can help with recording and property records questions.
Do not sign anything you do not understand. Do not ignore letters from the servicer, even if they are confusing. If you want to keep the house, ask the servicer in writing what they need and what the timeline looks like. If you want to sell, talk to the servicer early so you know how the payoff works. If you are thinking about handing it back, get advice first, because it affects the estate and the other heirs.
Keep the utilities on and the insurance in place while this is sorted out. Check the mail at the property. If the house sits empty, tell the servicer and your insurance company. Small things like a leak or a broken window can turn into big problems. Take photos and keep receipts.
Every family’s situation is different. The loan documents, the estate plan, who else is on title, and whether anyone else lives there all matter. When in doubt, ask the servicer for the answer in writing, and ask a lawyer, a CPA, or a HUD-approved housing counselor before you make a decision you cannot undo.
There is a fuller write-up at a reverse mortgage house after a death.