Purchase money mortgage vs refinace mortgage

[Catia]

PLease will someone explain to me how a trustee views a refinnce type of mortgage?
I have been told, and I have read several places that a trustee views a refinance mortgage differently than a purchase monsy mortgage.
I keep trying to ask this question, and get no response, perhaps I am not being clear enough, so I will try another way.

My home was purchased and paid for. I refinanced the home and now have a mortgage that is NOT a purchase money mortgage. It is a secured debt, but can be viewe by a trustee differently because it is not a purchase money mortgage--can someone here tell me why???
I want to use my homestead exemption when I file, and be able to keep my home. Please can someone explain what the difference is???
I do not want the trustee to avoid (reverse) my mortgage and liquidate my home.

[HHM]

The trustee could care less if the mortgage is purchase money or not.

However, the issue for the trustee is whether you intentionally encumbered the asset (your home) to avoid creditors who might be able to make a claim. (and when it comes to real estate, the look-back period can be up to 10 years)

The issue is not whether the mortgage is purchase money, or not; the issues will be, how did you do the financing (did you finance through a bank or other conventional finance company), what did you to do with the money, etc etc.

[Catia]

Thank You HHM

That makes sense, a lot of the info I was getting was from looking up 'how to convert non exempt assets into exempt assets' pre-BK planning.
What I am trying to make sure about is that I have not done anything that could even be possibly misconstrued as fraudulent.
The mortgage on my residence, (which I want to exempt) might be considered a 'preferential transfer' of an 'antecedent debt'.
I have some odd circumstances, due to illness, and it taking years to get a definate diagnosis. I go into and out of remission. I am NOT on any assistance (ssi/ssd).
When I have been too ill to work, and my savings is depleated, I have been lent money from a friend to keep me going, so that I would not loose anything. We consolidated all the money I owed him over the years (which was an unsecured debt) of about $50k, and created a private mortgage with very low interest, this way, should i become gravely ill and die, his debt will be repaid (.i.e: he gets the house and can do with it whatever he wants), and also, for tax purposes so that it is not viewed as a gift, because it is not.
I do not want to put the home nor he at risk of 'avoidance' by a trustee. The money he has given me over the years has ALWAYS been in the form of a check, which I deposited into my account and used to pay bills (mortgage on another home I own, old property taxes, utilities, major repairs to home etc).
Now the other home is going into foreclosure, I simply cannot keep up with it, nor the types of awful tenants I get that wreck the property (it is in a bad neighborhood).
Fact is, but not for my friend and his loans, I would never have been able to keep up with things as long as I did, as I have no living family I can fall back on. I am worried trustee will ask for proof of where the $$ went--and all I have is bank statements.

Repairs were often DIY, by then fiance (and myself when I was not ill), which bank statements reflect thousands to home repair outlet stores for materials etc. But some transactions were cash for labor. (New plumbing after pipes froze/burst), installation of new furnace etc-Done without proper building permits.
This is something I am looking back on NOW that could cause problems. When repairs needed done though, it was an emergency, I never thought about it--I needed plumbing fixed ASAP.
I can take pictures and prove these things were in fact installed--but have little proof otherwise.
I am wondering just how detailed they will get.
Most all of my debts are secured to property I own. I have little unsecured debt now--just some old medical bills and $1000 credit card debt, old utilities--maybe all totalling less than $5k.
BUT--if the other home forecloses, I will be faced with deficiency judgement for probably about $50k.
I wanted to file BK to get a fresh start, so that I do not have a deficiency judgement following me around preventing me from living a 'somewhat normal life'.
I am basically poverty level, not even close to median income.
I am trying to figure out which is the best way to proceed. Timing and proper planning here is important.

[benqmark]

My parents bought their home 4 years ago

My parents bought their home 4 years ago at a 4% rate, which is due to change next year when their loan rate. With the market crunch and the new strict lending that's bound to occur as a result of this. They've both been at their great paying jobs for over a decade; but they are still worried about whether they will be able to secure a decent fixed rate when their mandatory refinance is up. Do you have any suggestion?

[ThreadsSnapping]

I recommend your parents start now. That way if there are any problems/issues they have some time to correct them before their rate goes up and they are stuck. I would have them talk to a good mortgage broker and see what they would qualify for. If they qualify for a good rate now, I would go ahead and just refinance now rather than wait as you don't know what the market will do. Also they might want to call their mortgage company now and see if they can refinance throught them.

TS