What Happens to Your Home After a Reverse Mortgage?

Reverse mortgages give you flexibility while you live in your home — but what happens when you move or pass away?

Let’s clear it up.

👨‍👩‍👧‍👦 Your Family Doesn’t Lose the Home

A reverse mortgage is a loan — just like any other mortgage. That means you or your heirs still own the home. When you move out or pass away, the loan becomes due.

Your heirs have 3 options:

1. Refinance the reverse mortgage and keep the home

2. Sell the home, repay the loan, and keep any remaining equity

3. Walk away — if the home’s value is less than the loan, they owe nothing beyond the home itself

🛡️ Non-Recourse Protection = Built In

This is a huge safeguard.

Reverse mortgages are non-recourse — meaning you (or your heirs) can never owe more than the home is worth.

If the loan balance is $400,000 but the home sells for $350,000 — the lender eats the loss. Not your family.

🏡 Can the Bank Take the House?

No. The home stays in your family’s control.

As long as the loan is repaid (typically through a refinance or sale), your heirs get to decide what happens to the property.

You’re not giving up ownership. You’re leveraging equity.

📲 Want to See How It Would Work for You?

Let’s run a no-pressure scenario and see how a reverse mortgage might fit into your legacy planning.

📞 Text “Legacy” to 512-773-6729
📅 Or schedule a time here: https://apply.austensmith.com