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FACT: A reverse mortgage will not transfer debt to your children. Once you pass away, your children will have the option to pay the balance of the loan to keep the house, or they can work with the bank to sell it. If they do not want to keep the house, they will not have to pay back any portion of the loan and will be given no debt. Once the house is sold, they will receive a portion of the earnings if there was any remaining equity.