If you obtain an HECM Reverse Mortgage this will not be a problem. The HECM Reverse Mortgage is a federally insured mortgage. It will cover any shortage in remaining equity which may have occured if the value of the house drops below what it was valued at the time you took the reverse mortgage. This can occur if property values decline due to a slow market.

HECM mortgages are availble through any FHA approved reverse mortgage lender. In order to cover the possibility that your heirs will owe money on your reverse mortgage, you will have to purchase the insurance policy at the time of the mortgage and pay the premiums throughout the term of the mortgage. By doing this you can rest assured that no one will owe any money on your reverse mortgage after you are gone.

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