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Judgement/lein/foreclosure on a Reverse Mortgage

We have a reverse mortgage with Tenure monthly payments. We had a business failure and defaulted on a SBA loan. We depend on the reverse mortgage payments for basic living. Can the SBA lender get a judgement, place a lien on our home, and foreclose - effectively paying off the reverse mortgage and putting us on the streets. Is there any protection for lifetime income with a reverse mortgage that can not be taken away by another Lender?

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

The lender can file a lawsuit against you and get a judgment and place a lien on your property in order to recover his dues. In order to recover the dues, he can foreclose the property. If you have any retirement income or social security income, the lender will not be able to garnish it.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 03:34 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

A Reverse Mortgage works exactly like a Reverse Mortagage in that scenario. When somebody wins a Judgement against you, they can place a lien on your home, but can't foreclose.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 03:34 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

can I file for chapter 7 in the State of Tennessee and keep my reverse mortgage and protect my property?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 03:34 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Wardo,

You can file Chapter 7 and still save your property. In order to do so, you will have to reaffirm your loan when you are in [url=http://www.mortgagefit.com/bankruptcy/chapter7.html]Chapter 7 bankruptcy[/url] filing. This will make you personally liable for the mortgage payments and if you pay the loan on time, you will be able to save the property.

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 03:34 | Post subject:

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

A judgement lien can be placed against your Title, but they can't foreclose.

If you ever file bankruptcy, your Tenure payments will stop, so that's not a good idea. That subject is in the Note you signed.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 03:34 | Post subject:

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