Do you have to reaffirm mortgages to get refinanced? 17 Answers as of February 23, 2015

I am trying to refinance after my bankruptcy 4 years ago. Do I need to reaffirm the original mortgage since it was not in the bankruptcy? I intend to stay in the home, thus refinancing, but would have to rehire a lawyer go to court etc.

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Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
Reaffirmations can only be filed BEFORE you get the bankruptcy discharge, and it sounds like you got your discharge years ago. (Did you have a lawyer who knew his or her business? Bankruptcy is not a really simple area of law.) Discuss with your proposed lender that you neglected to reaffirm, but that you have been 100% on time with all payments (if this is true)reaffirmation or not. That is probably the strongest indication that you will pay faithfully in the future. Good Luck.
Answer Applies to: Wisconsin
Replied: 2/23/2015
J.M. Cook, P.A. | J.M. Cook
No,the lender could give you a new loan regardless of whether you reaffirmed the original loan - they just don't want to. It is nearly impossible to go back to court and reaffirm a mortgage after the case is closed, regardless of what the lender tells you.
Answer Applies to: North Carolina
Replied: 2/23/2015
Tokarska Law Center
Tokarska Law Center | Kathryn U. Tokarska
No it is not advisable to reaffirm a mortgage and the time to have done that is over as there is a specific timeframe during which a reaffirmation can be executed. More importantly, you are not required to have reaffirmed a mortgage in order to later obtain re-financing. What you may need is a written proof from current lender that shows what payments that have been made on the loan since the Bankruptcy filing. Send a written request to your current loan servicer asking for a statement showing account activity since the BK case was filed. The potential new lender in determining whether to finance a loan will want to see the current balance on the note and proof of consistent on-time payments. You can also request that this statement be appended to your credit report by forwarding it to the credit bureaus with such a written request. Once the document is added to your credit report it will be available to anyone who runs a credit check although it will age with time and therefore I advise my clients that if they wish they can request such a document once a year and append it to their credit report or simply keep a copy in their records and provide it with the loan application when they seek different financing options.
Answer Applies to: California
Replied: 2/23/2015
Goldsmith & Guymon
Goldsmith & Guymon | Marjorie Guymon
In lieu of refinancing with your current lender with whom you did not reaffirm, look for another bank to refinance through. Otherwise, yes, you have to file a motion to reopen your case and set aside the discharge order, file a reaffirmation agreement signed by you and the lender, attend a hearing on the same and get it approved, then have your discharge order re-entered and your case closed out.
Answer Applies to: Nevada
Replied: 2/20/2015
EDWARD P RUSSELL | EDWARD P RUSSELL
Some of the mortgage companies require that the debt was reaffirmed in the bankruptcy before they will refinance for you. It is too late to reaffirm the debt now.
Answer Applies to: Minnesota
Replied: 2/20/2015
    Ronald K. Nims LLC | Ronald K. Nims
    Okay, it's a common misconception that debtors in bankruptcy can pick a choose what debts are included in their bankruptcy. All of your debts are automatically included in your bankruptcy, you did sign a statement listing, under penalty of perjury, all of your debts. I assume this included your mortgage. A debt can only be reaffirmed while the bankruptcy case is open. (Okay, there are some special circumstances where the court will let you re-open the case to reaffirm a debt, like when you mailed the reaffirmation papers but your wife forgot to sign and you didn't find out about the mistake until after the case was closed. Other than being declared incompetent and spending the past four years in a mental hospital, there is no way the judge will re-open a four year old case.) After the bankruptcy is closed, the lender is forbidden to take any actions to collect the discharged debt. It is also forbidden for them to accept an informal reaffirmation (that is, one that didn't go through the court) and that's exactly what a refinance would be. Bottom line, you can refinance with another lender but your current lender can't do a refinance.
    Answer Applies to: Ohio
    Replied: 2/20/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    No, this is a lie that ignorant and unqualified individuals working for your mortgage company will tell you. What the lender is really saying is that it won?t refinance you, so look somewhere else for a new loan.
    Answer Applies to: Nevada
    Replied: 2/20/2015
    Freeman Law Group, LLC
    Freeman Law Group, LLC | Derek Freeman
    Whether you have to reaffirm depends on the bank's policy. Most will want you to reaffirm the loan before offering any kind of loan modification. Your other option is to go to another bank and see what they're willing to offer.
    Answer Applies to: Colorado
    Replied: 2/20/2015
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    I need details and to be able to review the schedules and orders. Start with you bank, go to a lawyer if there are problems.
    Answer Applies to: Michigan
    Replied: 2/20/2015
    Danville Law Group | Scott Jordan
    Its probably too late now. Some banks will require reaffirmation before refinancing. If yours is one of these, find a new lender.
    Answer Applies to: California
    Replied: 2/20/2015
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    It is too late to reaffirm. Apply for a loan with a different lender.
    Answer Applies to: California
    Replied: 2/20/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Judges do not generally like to reaffirm the mortgage in bankruptcy. Did you try to refinance with the same lender or a different one?
    Answer Applies to: New York
    Replied: 2/20/2015
    Scott Goldstein | Scott Goldstein
    You cannot reaffirm this late. You have to send in the papers pre closing of the case. It is not necessary to reaffirm to refinance - you just have to find a bank to take you on.
    Answer Applies to: New Jersey
    Replied: 2/20/2015
    John W. Lee, PC
    John W. Lee, PC | Timothy R. Douglass
    It is not necessary to have re-affirmed the mortgage for you to refinance. Additionally mortgages are not usually re-affirmed in the bankruptcy so if you attempted to re-open for that purpose you likely will not be able to do the re-affirmation.
    Answer Applies to: Virginia
    Replied: 2/20/2015
    Law Office of Andrew Oostdyk
    Law Office of Andrew Oostdyk | Andrew Oostdyk
    You are no longer able to file a Reaffirmation Agreement with the Bankruptcy Court. You would have needed to file the Agreement prior to receiving your Order of Discharge. Your current lender may be unwilling to refinance due to the permanent injunction of the Bankruptcy Discharge Order, in that reestablishing your liability with them may be seen as a violation of said order. That being said, you do not need to have a Reaffirmation Agreement in effect to refinance your mortgage. It may be the policy of a given lender to not move forward without a Reaffirmation Agreement in place, but there are lenders who will work with you if they want your business. You may want to contact your current lender and request a payment history. This will show the prospective new lender that you have been making timely payments (it is likely that your current lender is not reporting payments to the credit bureaus due to not having a Reaffirmation Agreement).
    Answer Applies to: Texas
    Replied: 2/20/2015
    John W. Lee, PC
    John W. Lee, PC | Kim A. Lewis
    It is too late to sign a reaffirmation agreement now. That had to be done and filed with the court prior to the discharge of your bankruptcy.
    Answer Applies to: Virginia
    Replied: 2/20/2015
    Mauritz Van Niekerk, Attorneys at Law
    Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
    Not in the northern district that I know of.
    Answer Applies to: New York
    Replied: 2/20/2015
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