When you move, sell the house, or die, the lender sells your property to recoup the money that was paid to you. After the lender's fees are paid, any equity remaining in the home goes to your heirs, and if you receive more payments than your home is actually worth, the Federal Trade Commission requires that you never owe more than the actual value. . It's no longer as easy as it once was to get a reverse mortgage. In April 2015, a new rule went into effect requiring borrowers to pass a financial assessment before they can be approved. This new rule is intended to show the borrower's ability to continue paying property taxes and insurance premiums and to prevent defaults. Borrowers who do not meet financial requirements have the option to put the loan money aside to pay property taxes and insurance. bonuses. Although this sounds good, there is a formula that calculates the amount that will be set aside for these expenses. They can end up being very large and ultimately make the loan impractical for some.