Reverse Mortgage Ch7 Risks?
Posted: Wed Apr 09, 2014 3:42 pm
To: cdcbaa@yahoogroups.com
X-Yahoo-Newman-Id: groups-system
Hi all,
I have an elderly couple with a tapped out reverse mortgage looking to file
ch7. There is little to no equity in the property, and they want to keep
their home at all costs. The deed of trust basically says with respect to
BK: "if there is a legal proceeding that may significantly affect the
Lender's rights in the Property (such as a proceeding in bankruptcy), then
the Lender may do and pay whatever is necessary to protect the value of the
Property and Lender's rights in the Property." The acceleration clause
does not list BK as grounds but is limited to death and transfer of title.
I don't think a chapter 7 proceeding qualifies as a legal event
significantly affecting the Property value or Lender's rights, but the
lender may disagree. When I called the lender, I was told the client could
surrender the property or reaffirm the debt as their only 2 options upon a
ch7 BK filing.
It appears ch7 is a viable option but if anyone else thinks otherwise,
please let me know.
Jeffrey Hsu, Esq. | JCH Law Firm
1031 S. Garfield Ave. | Alhambra, CA 91801
Phone & Fax: 626-999-5959
jhsu@jchfirm.com |
www.jchfirm.com
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The post was migrated from Yahoo.
X-Yahoo-Newman-Id: groups-system
Hi all,
I have an elderly couple with a tapped out reverse mortgage looking to file
ch7. There is little to no equity in the property, and they want to keep
their home at all costs. The deed of trust basically says with respect to
BK: "if there is a legal proceeding that may significantly affect the
Lender's rights in the Property (such as a proceeding in bankruptcy), then
the Lender may do and pay whatever is necessary to protect the value of the
Property and Lender's rights in the Property." The acceleration clause
does not list BK as grounds but is limited to death and transfer of title.
I don't think a chapter 7 proceeding qualifies as a legal event
significantly affecting the Property value or Lender's rights, but the
lender may disagree. When I called the lender, I was told the client could
surrender the property or reaffirm the debt as their only 2 options upon a
ch7 BK filing.
It appears ch7 is a viable option but if anyone else thinks otherwise,
please let me know.
Jeffrey Hsu, Esq. | JCH Law Firm
1031 S. Garfield Ave. | Alhambra, CA 91801
Phone & Fax: 626-999-5959
jhsu@jchfirm.com |
www.jchfirm.com
CONFIDENTIALITY NOTICE: This e-mail message is intended only for the person
or entity to which it is addressed. It may contain information protected by
the attorney-client privilege, work-product doctrine, or other privileges.
Any unauthorized review, use, disclosure or distribution is prohibited. If
you are not the intended recipient, please contact the sender by reply email
and destroy all copies of the original message. If you are the intended
recipient but do not wish to receive communications through this medium,
please so advise the sender immediately.
The post was migrated from Yahoo.