IF your mortgage debt was discharged, and if you did not reaffirm the debt, then you are not responsible for the debt and can't be held responsible for the debt....including the past 6 months. In all likelihood, you can remain in the property until the foreclosure sale.....and that could take several months. Ask Your Own Bankruptcy Law Question
Oct 12, 2016 · The downside to not reaffirming a debt in bankruptcy is that the creditor will not report any more loan payments on the debtor’s credit report, which can slow somebody’s ability to rebuild their credit after filing bankruptcy. But because reaffirmation agreements do not provide added legal protection for lenders on 1st deeds of trust loans ...
I am in Lisa’s boat in that my mortgage company (WF) told me that the court papers did not show that I reaffirmed my mortgage before discharge in 2003. They said you can only reaffirm during an active bankruptcy. I have been making payments since then and refinanced in 2004.
Sep 03, 2012 · If you filed a Chapter 7 bankruptcy and did not reaffirm your mortgage you are no longer personally liable on the mortgage. Therefore, you could stop paying your mortgage and not be liable for a deficiency balance on the mortgage. However, it is not advisable to move out to the property until the property has gone through the foreclosure.
co-obligor or guarantor does not have to pay. If, however, a debtor is a guarantor of a loan and the borrower (non-debtor) has the property securing it, the guarantor (debtor) should not have to reaffirm the debt for the borrower to keep the property, as long as the borrower is current on the payments. In any event, if the debtor
Reaffirming the debt gives it new life -- you're once again legally obligated to pay it. If you don't make the mortgage payments, the lender can foreclose and your bankruptcy won't stop this from happening. You'd also still be liable for any deficiency balance after the property's sale.
You do NOT have to Reaffirm to Refinance The truth is that you do NOT have to reaffirm your loan to refinance. There is no law that says anything like that. The hurdle is not a law, it is just the bank's policy. They may have chosen not to offer to refinance to people who chose not to reaffirm.Jun 7, 2018
If the debt has not been reaffirmed and there is a default, the lender may only pursue its collateral and will not be able to pursue the individual if there is any money still owing.Oct 12, 2016
The reaffirmation of mortgage debts is possible in Chapter 7 bankruptcy but it's not necessary. Learn what a reaffirmation agreement is how it affects your home mortgage.Apr 15, 2021
Can you file a reaffirmation agreement after discharge? Once a discharge order has been entered in your bankruptcy case, you can no longer reaffirm any of the debts that were included in the discharge agreement. The same goes for if your case has been closed by the court.Jan 13, 2021
Reaffirming a real estate loan is a pointless and risky thing to do. Reaffirming is agreeing to pay the loan and any deficiency should a foreclosure later take place. Not reaffirming doesn't prevent someone from refinancing, but it may prevent you from refinancing with your current lender.Feb 10, 2014
Reaffirming your mortgage means that you file paperwork that states that you affirm this debt regardless of your bankruptcy discharge. That protects your lender from losing out on the money they have invested in the property, and it also allows you to retain your ownership in the home and your accumulated equity.Mar 12, 2019
Generally, there is no reason to reaffirm a mortgage obligation unless the mortgagee has agreed to modify one or more of the mortgage terms so that keeping the mortgage is much, much more beneficial.
Therefore, an additional reason why some debtors reaffirm a debt is because a co-obligor (someone who co-signed for the debt) or guarantor (someone responsible for the debt if the debtor defaults) may have to satisfy it even if the debtor receives a discharge.
Either way - if the reaffirmation agreement is not approved, your personal liability is discharged. And - just like when the court denies approval of the reaffirmation - most lenders will simply keep everything the same, as long as you make timely payments and keep the vehicle insured.Sep 3, 2020
Although Chapter 7 bankruptcy gets rid of your personal liability on your mortgage, the lender can still foreclose if you stop paying. Filing for Chapter 7 bankruptcy will wipe out your mortgage loan, but you'll have to give up the home.
60 daysBe sure to evaluate all of your options carefully and understand the consequences fully before deciding to reaffirm any debt. However, you must decide quickly because reaffirmation agreements must be filed with the court no later than 60 days after your 341(a) meeting of creditors.