I’m 86 and my partner and I took out $15,000 for kitchen repairs. We were told there’d be no interest, but it turns out the interest is $3,500 a month. Now the $15,000 loan has grown to over $80,000. If I file for bankruptcy, will it pay off the reverse mortgage and help me keep my house?
Unfortunately, bankruptcy doesn’t eliminate reverse mortgages. It might help with other debts, but you’d need to keep paying the mortgage to stay in the house.
Zora said:
Unfortunately, bankruptcy doesn’t eliminate reverse mortgages. It might help with other debts, but you’d need to keep paying the mortgage to stay in the house.
That’s right. Reverse mortgages are secured loans tied to your house, so bankruptcy won’t erase them.
Zora said:
Unfortunately, bankruptcy doesn’t eliminate reverse mortgages. It might help with other debts, but you’d need to keep paying the mortgage to stay in the house.
You should definitely talk to a foreclosure defense attorney in your state for better options.
It sounds like you were misled about the terms of the loan. You might want to consult a legal professional to see if there’s anything you can do about that.
Bay said:
It sounds like you were misled about the terms of the loan. You might want to consult a legal professional to see if there’s anything you can do about that.
Agreed. There are laws against predatory lending practices, and an attorney might be able to help you fight this.
I’m so sorry you’re going through this. Reverse mortgages can be tricky, and they often come with high fees. Bankruptcy won’t pay it off, but you might be able to negotiate the terms.
Jessie said:
I’m so sorry you’re going through this. Reverse mortgages can be tricky, and they often come with high fees. Bankruptcy won’t pay it off, but you might be able to negotiate the terms.
Good suggestion. Sometimes lenders will work with you to adjust the repayment terms, especially in cases like this.
If you can’t afford a private attorney, check out free legal aid services in Buffalo. They might have foreclosure defense resources for seniors.
Bankruptcy can help with unsecured debts but not mortgages. Focus on finding a foreclosure defense attorney who can protect your home.
Vega said:
Bankruptcy can help with unsecured debts but not mortgages. Focus on finding a foreclosure defense attorney who can protect your home.
Exactly. They might also help you explore refinancing options or other programs for seniors.