[CLBS] Reverse mortgage

[Catherine Dullea]

Dear List-mates:
I have a potential chapter 7 client who has a home he says is worth
$525,000.  He has a reverse mortgage of $350,000.  He says that another
attorney told him he didn't have to worry about the Trustee taking the home,
"...because of the reverse mortgage -- the government owns the home..."  I
suspect he didn't understand what the attorney told him.  Is there any
reason a bankruptcy trustee couldn't take a home that's got more than $100K
equity and a reverse mortgage?
--Katie