If you have a reverse mortgage, you can still leave your home to your children or other heirs after you pass away. However, the loan balance on the reverse mortgage will need to be repaid in full before the property can be transferred to your heirs.
This means that if you have a reverse mortgage and you want to leave your home to your children or heirs, they will typically need to pay off the outstanding balance on the reverse mortgage either by selling the property or by refinancing the loan into a traditional mortgage. If the home is sold, any remaining equity after the reverse mortgage is paid off can be passed on to your heirs.
It's important to note that the repayment of the reverse mortgage loan is typically limited to the value of the home. In other words, if the home is worth less than the outstanding balance on the reverse mortgage, the lender cannot go after your estate or heirs for the difference. Your heirs can simply turn the property over to the lender and the debt will be considered satisfied.
Overall, if you have a reverse mortgage and you want to leave your home to your children or other heirs, it's important to have a plan in place for how the outstanding loan balance will be paid off. This can help ensure that your wishes are carried out and that your heirs are not burdened with unexpected debt.
