With a reverse mortgage if owner stays contained by house and ends up next to excessive equity does lender shift after estate?

With a reverse mortgage, If owner stays in house for longer than expected and with interest, etc. ends up "upside down" --- contained by other words, more is owed on the house than it's current value, (of course, after the death of the owner), and after the wall sells the house can it then come to the estate to be paid up the difference?
Answers:
Reverse mortgages are tricky and prone to lots of misinformation. But do not worry in this valise. First, the bank doesn't own the house so they don't get to flog it. The heirs have a year to refinance or get rid of.

If the proceeds are not enough to satisfy the loan, the lender (or their insurance on the loan) absorb the difference. This is a "non recourse rule" which entitles the lender to only the market good point of the home and nothing more.

The other assets are safe. Source(s): Loan officer, actual estate broker

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