NOT MY FIRST RODEO

A REVERSE MORTGAGE IS NOT DESIGNED TO TAKE YOUR HOME...

A reverse mortgage is a mortgage loan, usually secured by a residential property, that enables the borrower to access the unencumbered value of the property. The loans are typically promoted to older homeowners and typically do not require monthly mortgage payments. Borrowers are still responsible for property taxes and homeowner's insurance. Reverse mortgages allow elders to access the home equity they have built up in their homes now, and defer payment of the loan until they die, sell, or move out of the home. Because there are no required mortgage payments on a reverse mortgage, the interest is added to the loan balance each month. The rising loan balance can eventually grow to exceed the value of the home, particularly in times of declining home values or if the borrower continues to live in the home for many years. However, the borrower (or the borrower's estate) is generally not required to repay any additional loan balance in excess of the value of the home.  SOURCE:  Wikipedia

So, an individual has a $200,000 home that has been completely paid off and this individual borrows $200,000 using a REVERSE MORTGAGE and when he dies, that loan must be paid off...  There is no money in the individual's bank account because if there was, there would be no need to borrow the money in the first place.

How does that loan get paid back now?  The dead individual's house goes to the BANK to offset the debt and the interest accrued...