July 18th, 2010 3:16 PM by Juan Luis Rodriguez-Kohly
Bankrupcy and the Reverse Mortgage
As a Reverse Mortgage Originator for the past 5 years and having researched the Bankruptcy provisions of 3 different lenders, it is my understanding that in Florida,:
Chapter 7: if you are in Chapter 7, you MUST have the discharge before you can close a Reverse Mortgage.
Chapter 13: a) you must pay off the debts. or b) obtain a release from the court for some or all of the debts. In that case you could close without having a discharge or having to pay for released debts.
You may want to consult your attorney on this matter as I am not one and can't give any legal advise.
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