What if owner dies leaving the with a reverse mortgage and the house is going into foreclosure.

Generally, in a reverse mortgage, when the borrower dies, the loan is all due and payable. If a probate is opened, usually the lender will postpone the Notice of Default during probate as long as there is a sufficient equity cushion. When there is no equity left, the lender will likely initiate foreclosure proceedings. If you are the successor trustee, you need to communicate with the lender, and list the propety for sale with a broker, to preserve as much of the estate asset as possible. You should consult with a trust attorney

The reverese mortgage has to be paid in full before there are any funds to be distributed as part of an estate.