Once the last surviving borrower no longer resides in the home as his/her primary residence, the loan becomes due and you or your estate is responsible for repayment of the money you received from the reverse mortgage, plus interest and other fees as agreed upon in the beginning. Any remaining equity belongs to either you or your heirs. You or your heirs will not owe more than the value of the home, as long as you abide by the loan terms. The reverse mortgage is insured by the Federal Housing Administration (FHA), and they will be responsible for the portion of the pay-off that exceeds the value of the house when the loan the loan is repaid.
NOTE: This is not legal or financial advice. Please consult with an attorney or financial advisor for your specific situation.