Foreclosure with Reverse Mortgage

[Dan Rich]

I was considering to bid on a property that will be up for auction but I am trying to understand what is going on. This is what the clerk of court shows by the defendant (now deceased)
1. Satisfaction of Mortgage (Chase had the property in the foreclosure process) 07/2023
2. Home equity conversion mortgage filed from FINANCE OF AMERICA REVERSE LLC $1.5M 07/2023
2. Owner deceased 03/2024
3. FINANCE OF AMERICA REVERSE LLC files Lis Pendens 08/2024
4. FINANCE OF AMERICA REVERSE LLC wins judgement amount was $400K.  

It appears to me the owner was in foreclosure with Chase but was able to get a 1.5M equity line out with FINANCE OF AMERICA REVERSE LLC. Shortly after the owner dies, the property goes into foreclosure. 

My question - what might be reasons why the judgement amount is so much lower than the mortgage amount? 

[Chad U.]

Quote from @Dan Rich:

Thanks Chris, is it typical for a reverse mortgage to be filed as a home equity loan?

Yes they are referred to as Home Equity Conversion Mortgages (HECM)