I have a reverse mortgage. You can ask any question from reverse mortgage direct. They are very helpful.
good luck working things ouot
I can say that although rare, a second mortgage company will jump first place during chapter 7 and come after your assets. Strange that the court let you keep your retirement assets on a chapter 7.
The second mortgage company may pursue putting a lien on your cash home if they didn't agree to be included in the bk7 as can other creditors.
My next question is, why on earth would you pull money out of retirement to buy a house when a house does not create wealth. The equity in the house would be earning zero percent interest whereas I'm sure your retirement vehicle is earning more than that. Do you believe that an auction house will double in value in the next 5 years and quadruple in 10?
Instead, I'd recommend you rent or lease purchase for 3 years for foreclosure and bk wait time and rebuild your credit (get secured credit cards) and then buy with little down. KEEP YOUR MONEY IN YOUR RETIREMENT PLAN. Don't end up broke and old having to resort to a reverse mortgage when your 70. Leave something for your family.
In the meantime contact your bk attorney for advise about what the second company's rights.