A reverse mortgage works by making the equity in the home available to the homeowner before it is sold. If the borrower dies, the reverse mortgage becomes due and payable. The borrowers’ estate would contact the lender and determine the schedule for repayment of the money received, plus interest and fees. The loan may be repaid by selling the home. If the home is sold for less than the amount owed, the FHA would make up the remainder to the HECM lender. (There is a possibility the reverse mortgage will deplete the equity in the home.)