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Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31688
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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My dad is in San Diego, Ca. He has a reverse mortgage and

Resolved Question:

My dad is in San Diego, Ca. He has a reverse mortgage and has a line of credit with it. It looks like he will have to claim chapter 7. He still has equity in his house that is not being taken up with the HECM at this time. If he is forced to chapter 7, will he be able to remain living in his home, or will they make him sell the house.
Thanks for your time
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 7 years ago.
California has a homestead exemption:

This exemption should allow him to keep his home by re-affirming his mortgage after filing Chapter 7.
Customer: replied 7 years ago.
Will the homestead exemption apply even though he has possibley several hundred thousand dollars worth of equity in the home above the reverse mortgage?
In other words would the judgement only allow him to remain living in the home, and only allow a lien against the property?
Expert:  Roger replied 7 years ago.
<p>Yes. He'll have the exemption.   Any amount left over after paying the balance and him getting credit for the exemption will be turned over.</p><p> </p><p>If he has enough equity in his home, it is possible that the trustee will sell the property unless he can get the bank and trustee to allow the affirmation. </p>
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