Non Recourse means that you or your estate can never lose more than the home. If your home goes into foreclosure on a recourse loan, and there is still a balance owed after the home is sold at auction, the lender can seek reimbursement from your other assets. They can file judgments and against other property and seize assets to regain their losses.
On a non recourse loan, the lender can only take the home, nothing else. This means that all other assets in our estate are safe in the event you walk away from the home. If you owe $500,000 and your home is only worth $200,000 when you pass away, the bank cannot seek the remaining $300,000 from your estate. All of your estates assets are untouchable because HECMS are NON RECOURSE!
All government insured reverse mortgages are non recourse, but other reverse mortgages may not be. Make sure you understand the terms and conditions of the reverse mortgage you are seeking. If you are getting a government insured HECM reverse mortgage the guidelines are all the same. If you are getting a non government insured reverse mortgage the terms can vary widely from lender to lender.