This is definitely a good and a common question. When the borrowers pass on, the heirs still get their inheritance, and they can choose to do several things to pay the loan back. The most common choice is to sell the house, and use the money from the sale to pay back the loan. Once the loan is repaid, whatever money that remains is left to the heirs. If the heirs do not want to sell the house, they can always refinance or take out a traditional mortgage on the house or use other funds to repay the loan.

Disclaimer: The response above is not intended to be anything other than the educated opinion of the author. It should not be relied upon as financial advice. America Advisors Group recommends speaking directly with an AAG Reverse Mortgage Professional regarding your specific situation and needs. Please call 1 (800) 466-0572 to receive AAG's information pack with a FREE DVD and Brochure featuring Former Senator Fred Thompson.

This is a very good question. Many people believe that a reverse mortgage will eliminate ones inheritance, but this is not the case. When this kind of loan is put on the house, debt builds on the house, but the house still belongs to the borrowers. In fact, with a reverse mortgage, the lenders never own your home. Sale of the home is not even required, but payment of the loan is.

Disclaimer: The response above is not intended to be anything other than the educated opinion of the author. It should not be relied upon as financial advice. America Advisors Group recommends speaking directly with an AAG Reverse Mortgage Professional regarding your specific situation and needs. Please call 1 (800) 466-0572 to receive AAG's information pack with a FREE DVD and Brochure featuring Former Senator Fred Thompson.