Here’s how it works. 1. Home owner has to pay the property tax or the Estate has to pay. 2. If the home gets foreclosed because no one pays the loan, the lender will pay the property tax to protect their interest. It could take them a long time to figure this out. 3. If they don’t the county will auction the tax bill and a tax buyer will have first priority in the long haul to foreclose. It happens all the time everywhere. The county will allow the tax buyer to foreclose as they only care about their tax revenues and the tax buyer/investor just bought the property for the amount of the taxes owed. The original loan gets wiped clean.
Sounds like the lender on the reverse mortgage to me, assuming no one other than the deceased party had an ownership interest in the property at the time of death.