Reverse Mortgage - What Happens if the Value of the House Drops 30%?

Andy: What happens if home values decrease significantly, such as 2008 housing crash, how it impacts the reverse mortgage customer? Mavis: I appreciate the question because a lot of people, that's their big fear. You know, I borrow money from my house and then the value of my home drops. Andy: In this instance, if you have the reverse mortgage, you have removed the equity you have access to. It is no longer correlated to the home value. That's where your worst case scenario with these, if you really think it through, is you spend through the value of your house.