Chapter 7 - liquidation of my home?

[KarlH]

What is the name of your state (only U.S. law)? California

I am 83 years old. My house has a value of $580,000 and has a reversed mortgage on it with $100,000 equity left. A $40,000 loan has a second position claim on the house. Could they successfully request the court to sell the house, satisfy the reversed mortgage and also be paid the $40K and me having to rent an apartment?

 

[Just Blue]

What is the name of your state (only U.S. law)? California

I am 83 years old. My house has a value of $580,000 and has a reversed mortgage on it with $100,000 equity left. A $40,000 loan has a second position claim on the house. Could they successfully request the court to sell the house, satisfy the reversed mortgage and also be paid the $40K and me having to rent an apartment?

Are you satisfying the terms of the loans?

 

[LdiJ]

What is the name of your state (only U.S. law)? California

I am 83 years old. My house has a value of $580,000 and has a reversed mortgage on it with $100,000 equity left. A $40,000 loan has a second position claim on the house. Could they successfully request the court to sell the house, satisfy the reversed mortgage and also be paid the $40K and me having to rent an apartment?

If you are not in default of any of the terms of your reverse mortgage or secondary loan then no, they cannot do that. If you are in default, then they possibly could.

 

[TigerD]

If you are not in default of any of the terms of your reverse mortgage or secondary loan then no, they cannot do that. If you are in default, then they possibly could.

I disagree. The Trustee will determine if there is enough equity in the property to justify a sale or not. The equity is an asset of the bankruptcy estate and the trustee has a duty to make that money available to pay creditors.

TD

 

[LdiJ]

I disagree. The Trustee will determine if there is enough equity in the property to justify a sale or not. The equity is an asset of the bankruptcy estate and the trustee has a duty to make that money available to pay creditors.

TD

Now that the title of the thread has changed...I agree with you.