What if you file bankuptcy and have a reverse mortgage?
The reverse mortgage is typically unaffected by the bankruptcy
as the mortgage is usually left out of the bankruptcy？ that is a
conversation you need to have with your attorney however. The
bankruptcy court may look at the amount of equity you have in your
home and determine what type of bankruptcy you qualify for.
A reverse mortgage can even be used to pay off a bankruptcy or a
mortgage in foreclosure as there are no credit requirements on
them. I suggest talking to a bankruptcy attorney for information on
what is available to you from the courts side of things.
Related Q&A：
What happens to a mortgage after a bankruptcy？Well, let me tell you. After a bankruptcy, things can get pretty complicated with a mortgage. Usually, the lender might have different options. They could decide to work with you to modify the loan terms to make it more manageable. But in some cases, they might even start foreclosure proceedings. Oh boy! It really depends on a bunch of factors like the terms of the mortgage agreement and the laws in your state. But don't panic! It's important to communicate with your lender and maybe seek legal advice to figure out the best way forward.
