I recently lost my parent who had a reverse mortgage which amounts to $300,000 right now. The property is only worth about 500,000 in today's market, but prior to the housing market bottoming out it was valued at 1,200,000, (two homes on three acres in California) Both homes are rented out and another one and a half acres is also rented out. Am I correct in that the mortgage company can foreclose on the property 12 months from the date that the last borrower vacates the property? And is my only option if I want to keep the property to get another loan to cover the reverse mortgage?
Thank you.

A reverse mortgage is where the lender provides the homeowner with income and a life estate in the property for title to the property when the owners vacate. The lender doesn't have to foreclose, just take possession.

The lender should already own the property, the borrow is just allowed to live there for money they got earlier or for monthly payments they were getting.

So it is not foreclose, they merely take possession of their house.