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What happens to the reverse mortgage after the borrower's death? This is one of the most common questions when it comes to this type of loan.

What happens after death?

When the last surviving borrower of the reverse mortgage has passed, the loan balance will become due and payable. A lot of people think that the house will revert back to the bank once the last borrower dies but that is not what happens.

Your heir will have the option to choose if they would like to repay the balance of the loan or keep the house, sell it and keep its equity or just walk away and leave the house to the lender and let them take care of disposing the property.