Reverse mortgages can be a valuable tools for financial security planning, but they also can be dangerous if you don’t understand fully how they work or deal with the wrong kind of people who market them.
If your property has a higher value than what is owed on the reverse mortgage at the time of your death, your heirs can sell the property, pay off the reverse mortgage and split the remaining proceeds.
A reverse mortgage will become due and payable if all the borrowers have passed away, has stopped occupying the property for more than one year, or failed to live up to the obligations in the loan documentation, e.g. not providing insurance, paying property taxes etc.
Read this free valuable guide to reverse mortgages from the Federal Trade Commission.