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What Happens to the Borrower if the Debt Comes to Exceed the Value of the Property?
What Happens to the Borrower if the Debt Comes to Exceed the Value of the Property?

Nothing happens to the borrower, who retains the right to live there. The loss that occurs after the borrower dies or moves out permanently is absorbed by FHA’s HECM reserve fund, which is financed by the mortgage insurance premiums paid by borrowers.