if the balance of the RM is greater than he foreclosure sale, can the RM company come after the estate for balance?

That is a good question! The homeowner who held the estate under an FHA reverse mortgage was never liable for anything accrued in payments to a lender in the event value falls below the amount due the lender up to their death. Beyond that and in the event of a foreclosed sale I would think the Reverse Mortgage company could come after the estate for any balance due them, but I am not a real estate attorney and cannot advise. I would ask this question of a real estate attorney, or perhaps someone can comment based on an actual case.

they should only be able to come after any value remaining in the house so the answer should be no. I would concur with Brian's response, but I get cautious when it comes to estate planning and always advise getting an attorney knowledgeable in estate planning's advise.

No. A non recourse loan all they can do is sell the house.

The benefit of the RM is that there is no responsibility or liability if the property does not sell for the outstanding balance.. they will not come after the estate for the deficiency.. if the property is worth more than the outstanding balance, then you can work with the lender to get it sold.. if there are proceeds remaining after paying off the RM.. it goes to the estate.. Also, if one of the heirs wishes to purchase the home, they can... but it would only be beneficial if the property is worth more than what is owed. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

NO! Every reverse mortgage loan has MIP built into the loan which helps protect the borrower and servicer representing the lender. The loan is non-recourse which means the servicer can only collect the current loan balance from the sale. If there is a shortage, the government pays the difference.