Can I reaffirm a reverse mortgage?

[tiggor96]

I have a reverse mortgage on my home and need to file a chapter 7 but i'm not sure how to proceed. Can I do a reaffirmation agreement on it? Thanks in advance for your help.

[AngelinaCatHub]

WHAT????

I'm not that smart, but I do believe the reverse mortgage means, you have or had a paid for house, you are selling the equity back to some organization and when you pass on, your place becomes the property of the mortgage holder. You are recieving an income from this. That you will have to list. I also think that for a lesser amount of money, if your heirs wish to have the house, they pay more than what you got for the reverse payments. It is like you sold this place with some sort of "life estate".

I do not know the details, but in a nutshell, you have no real mortgage. You have an agreement. Also they have a lien on this house for the monies you have recieved. Pass this by a good real estate lawyer, CPA, or one who writes these agreements. If the Trustee takes this place for equity it has in it, they would have to purchase what you recieved with that interest. I don't know if Utah is a homestead state. 'Hub

[justbroke]

I have a reverse mortgage on my home and need to file a chapter 7 but i'm not sure how to proceed. Can I do a reaffirmation agreement on it? Thanks in advance for your help.

You really need an attorney for this. It is quite possible that the lender will not even allow you to reaffirm such a mortgage. Remember that a reaffirmation agreement means that both parties agree. You can't force a lender into a reaffirmation agreement, although they usually agree to the terms.

With a reverse mortgage, you pledged "future" equity to the lender for money "today". Whether the lender will still want to keep this agreement will be important and up to the lender. I can't sit here and tell you exactly what will happen, but it is probably more likely that the lender would want to end the agreement and proceed with collecting on what's due.

Like 'Hub, I assume that there is already equity in the property, and unless it is being exempted, the Trustee will probably want to sell the property.