What if current residence was purchased with funds of refi on old residence?

[Catia]

Ok, long story short, 3+ yrs ago I refi'd my home, cash out, some of the $$ went towards the purchase of the home I now live in. I had not intended on moving here, it was supposed to be a rental, but I fell in love with the neighborhood. I lived at the old residence for 2+ yrs after the refi--mort docs state I must reside there 1 year...I definately did tewice that--Do they look to what you spent the $$ of your refi for? What types of questions does the ch 7 trustee ask about how/what you spent your refi $$ on? LOL if they look at my bank statements, they will see I made more pymts to L*wes--than anywhere else aside from mort co and homeowners Ins!
I might have to let the other house go into foreclosure, as it didn't sell and is now "upsidedown", and I cannot keep afloat, nor get good tenants, and it also did not sell. Heating bills are killing me.

[Minnymouth]

Will not be an issue probably, unless the Trustee or mortgage company can PROVE you refinanced to purchase another home with the cash out payment. Really too many years have gone by to justify that....

People refinance and use the equity in their homes to purchase autos and other property as investments.

Just be sure you run this by your attorney before you file to make sure......

Shouldn't be problem though.....

[Catia]

Well, my refi was already in process when I found the investment property, but the $ used for this property was less than 1/2 of my refi amt, I also had no intentions of moving into it either-but live here now-thoughts?