Can I Owe More Than My Home Is Worth?
A reverse mortgage is a “non-recourse” loan which means that you, your heirs, or your estate cannot be required to repay more than the appraised market value of the home at the maturity of the loan. If the loan balance exceeds the value of the home, you, your heirs, or your estate will only be obligated to repay an amount up to the current appraised value of the property.
This works well to insure that you aren’t obligated to come up with any additional funds at the maturity of the loan and aren’t putting any extra pressure on family or friends, heirs or otherwise to have to come up with any additional funds.
A Utah reverse mortgage works this way as do reverse mortgages at a nationwide level. Owing more than your home is worth will not be an issue with a reverse mortgage.