How Does A Reverse Mortgage Work?
Many older adults use reverse mortgages to manage house payments or to tap into their home equity without having to sell their home. The loan is called a “reverse mortgage” because over time the mortgage balance increases, rather than decreases like a traditional mortgage. A reverse mortgage can be structured in a variety of ways depending on the lender and the program you choose. For instance, after paying off any existing mortgage and other liens on your home, the rest of the reverse mortgage can be paid in several ways including:
- One large lump sum payment,
- A fixed monthly payment paid to you for a set time period, or
- As a line of credit to be drawn at your convenience.
The merits of reverse mortgages will not be discussed here. The issue addressed is simply, “can someone who has a reverse mortgage file for bankruptcy?” The general answer is: yes, you can. There are, however, several issues that must be addressed.
If you are interested in filing for bankruptcy and have a reverse mortgage or are thinking about getting one, this would be a good time to speak with the experienced bankruptcy attorneys at Levitt & Slafkes, P.C., before making any decisions.
Shelley Slafkes and Bruce Levitt have already helped many clients who have reverse mortgages through the bankruptcy process, and we can help you, too. The initial consultation is offered at no cost and we are even available to meet with you on weekends and evenings. We are here to help! Call us at 973-323- 2953 or contact us online to schedule a free consultation.