If I am current on my mortgage payments, can banks ask for reaffirmation in bankruptcy? 17 Answers as of March 19, 2012

If you stay current on your mortgage payments, do banks even ask for reaffirmation in bankruptcy? Also, if the property is not located in the state of residency that you file, what laws govern the property?

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Charles Schneider, P.C.
Charles Schneider, P.C. | Charles J. Schneider
Yes to the reaffirmation and yes to the banks asking for a reaffirmation.
Answer Applies to: Michigan
Replied: 3/19/2012
Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
In California, there are no reaffirmations for real property. So, no, you should not be asked to reaffirm on a mortgage in California.
Answer Applies to: California
Replied: 3/19/2012
Ferguson & Ferguson
Ferguson & Ferguson | Jackie Ferguson Graham
The state where the property is located controls disposition of that property. Most first mortgage companies do not require the signing if a reaffirmation agreement.
Answer Applies to: Alabama
Replied: 3/17/2012
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
I can think of no circumstances in which reaffirming a mortgage would be advisable. This pertains to the property wherever it is located.
Answer Applies to: California
Replied: 3/17/2012
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
The laws governing the property will be the laws of the district you file in. So if you file in NY then it will be the district in NY that you file under that will have control. It is not often that a judge will even let you sign a reaffirmation agreement for your mortgage in bankruptcy unless there is a benefit to you, such as a reduction in interest rate.
Answer Applies to: New York
Replied: 3/17/2012
    T.K. Byrne | Timothy K. Byrne
    In Mississippi your homestead mortgage has a ride through provision under the law. Nevertheless, a reaffirmation agreement is acceptable for the debtor and creditor to sign.
    Answer Applies to: Mississippi
    Replied: 3/16/2012
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    They can ask. Your lawyer (and you need one) will tell you why that's usually a very bad idea.
    Answer Applies to: Georgia
    Replied: 3/16/2012
    Heineman Law Office
    Heineman Law Office | Jeff Heineman
    Most banks do not ask for a reaffirmation for two reasons. One, the Courts can decide that reaffirming a $100K, or more, debt, is not practical. Second, even if a debtor reaffirms but defaults later, a bank is still required to follow state statutes regarding foreclosing on a property, whether judicial or statutory foreclosure proceedings. If the property is in a different state, then the state law of where the property sits governs.
    Answer Applies to: Idaho
    Replied: 3/16/2012
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    As long as you are current on your payments you should be fine.
    Answer Applies to: California
    Replied: 3/16/2012
    Debt Relief Law Center | Roger J. Bus
    Some banks ask for a reaffirmation, others do not. If the property is not located in the State you file Chapter 7 in, the Trustees may wonder if this demonstrates that you have disposable income available to pay on non-residential debt- and if you should then be in a Chapter 13 instead. So you have to be very careful in that regard. The bankruptcy "estate" is situated/has jurisdiction where you file your bankruptcy case, the location of the actual assets/property does not matter.
    Answer Applies to: Michigan
    Replied: 3/16/2012
    Law Office of Jeffrey Solomon
    Law Office of Jeffrey Solomon | Jeffrey Solomon
    The banks can ask for a reaffirmation. Whether or not you should sign is an issue you should discuss with an attorney. Property rights are based on the state where the property is located.
    Answer Applies to: Florida
    Replied: 3/16/2012
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