Is it possible to get out of a reaffirmed second mortgage? 19 Answers as of February 14, 2014

I really made a big mistake by doing that, my house is really upside down, money is down and this payment on the second mortgage is really hurting me financially. I filed Chapter 7 in 2010.

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Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
That is very unfortunate and certainly the reason why most lawyers would never, ever advise one to reaffirm on a second mortgage. You may be able to file Chapter 13 bankruptcy but you would not be able to file a Chapter 7 again until eight years has elapsed since the date of your previously filed bankruptcy.
Answer Applies to: Indiana
Replied: 2/14/2014
Stuart P Gelberg
Stuart P Gelberg | Stuart P Gelberg
You can file a chapter 13 and perhaps make minimal payments for 3 to 5 years or wait till 2018 and file another chapter 7.
Answer Applies to: New York
Replied: 1/30/2014
Moore Taylor Law Firm, P.A.
Moore Taylor Law Firm, P.A. | Jane Downey
It is too late once your case is over but are you sure the judge allowed the reaffirmation?
Answer Applies to: South Carolina
Replied: 1/30/2014
Bushhorn Law Offices | Thomas D. Bushhorn, Esq.
Unfortunately, a reaffirmed (recommitted to) debt in a bankruptcy such as a mortgage or vehicle, results in a financial obligation to the debtor (you) that you should not default. Depending upon the date when you filed your prior Chapter 7, there is still the possibility that you may be able to?file a Chapter 13 bankruptcy (repayment type).?Depending upon what?Federal District you live in Indiana (depends on county you reside) and the value of your home, you may be able eliminate the 2nd mortgage altogether and repay only a small percentage (does not include the 1st mortgage obligation or other secured debts and nondischargeable debts) of your debt (ie 5-10%).?You would still be able to obtain a discharge like you did in a Chapter 7 but only after you finished your Chapter 13 which the plan length is 36-60 months depending upon your financial circumstance.
Answer Applies to: Indiana
Replied: 1/30/2014
Bird & VanDyke, Inc.
Bird & VanDyke, Inc. | David VanDyke
Unfortunately, if you reaffirmed the debt it is now as if you never filed bankruptcy in regard to this debt. I never advise to reaffirm a second mortgage. Especially if you are underwater. You might look into whether the second loan was a purchase money loan. (a loan that you got simultaneously with the first mortgage)
Answer Applies to: California
Replied: 1/30/2014
    Kirby G. Moss PC | Kirby G. Moss
    The deadline to rescind a reaffirmation agreement was 60 days after the agreement was filed with the court or your discharge date, whichever is later, so yes, it is too late at this point. If house seriously under water, you might be able to get 2nd mortgage to take substantial discount in a lump sum payoff.
    Answer Applies to: Indiana
    Replied: 1/30/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    You may want to file a chapter 13 and strip your second mortgage if you have no equity
    Answer Applies to: New York
    Replied: 1/30/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    UG. In California you are not liable on a second mortgage if it was a "purchase money loan" - meaning you acquired it at the time you purchased the property. If the second was obtained after you bought the house you are liable for any deficiency balance, (the difference between what it sold for at auction and the debt). The reaffirmation agreement can not or should not change this. The purpose of the reaffirmation agreement is to simply reaffirm the loan on the existing terms and to not add any other burdens. If additional burdens were added, I think you could defend against it. You should have a knowledgeable bankruptcy attorney review the document, especially if it was a purchase money second.
    Answer Applies to: California
    Replied: 1/30/2014
    Law Office of Jeffrey Solomon
    Law Office of Jeffrey Solomon | Jeffrey Solomon
    A reaffirmation agreement is a binding agreement. A person who reaffirms is stuck with the debt. There is an exception during the bankruptcy case to have a 60 day period to cancel the agreement, but other than this exception, the debt continues until it is paid, settled, or a subsequent bankruptcy is filed.(4 year waiting period for a chapter 13, 8 years for another chapter 7).
    Answer Applies to: Florida
    Replied: 1/30/2014
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    You have 60 days after the Reaffirmation Agreement is approved by the Court to revoke same. I never allow my clients to sign Reaffirmation Agreements on real estate.
    Answer Applies to: Colorado
    Replied: 1/30/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    Whether you sign a reaffirmation or not, the main leverage the second mortgage holder has is a lien on your property. You have to figure out whether a foreclosure would be worth their time after they pay off the first mortgage. If you don't have sufficient equity to compensate the first mortgage holder, then they will sue you on the promissory note (if state law allows doing so) rather than foreclose on your property. You can file a Chapter 13 bankruptcy after filing a Chapter 7, but you must wait 4 years from the date you filed the Chapter 7 in order to get a discharge in the Chapter 13. If there is no equity to cover the second mortgage, you could "strip" the second lien from your property in a 13 if you complete your plan, but it does involve paying the bankruptcy trustee what you can afford per month. The second mortgage gets treated like an unsecured debt in that scenario, and you essentially discharge it after paying whatever you can afford in plan payments. If your property value is sufficient to pay even one dollar of equity to the second mortgage holder after satisfying the first, you cannot "strip" the second lien in a Chapter 13. In that case, your only option is to attempt a mortgage modification which could roll the two mortgages into a new one and extend the term of the loans. You should talk to a non-profit housing counselor in your area about loan modification options. If a loan mod is not an option, and if a Chapter 13 is not a solution, then you should take steps to surrender the home because a foreclosure is worse for your credit rating than a bankruptcy. If the second mortgage holder still sues you on the promissory note, you could get some relief by filing a Chapter 13 and surrendering your home as long as you file the bankruptcy at least 4 years from the date you filed your Chapter 7.
    Answer Applies to: Oregon
    Replied: 1/30/2014
    Law Office of Barry R. Levine | Barry R. Levine, Esq.
    If your reaffirmation agreement was filed with and approved by the bankruptcy court, no.
    Answer Applies to: Massachusetts
    Replied: 1/30/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    It is too late.
    Answer Applies to: Nevada
    Replied: 1/30/2014
    Danville Law Group | Scott Jordan
    Although you may have signed the reaffirmation agreement, do you know if the bank received the Judge's approval of the agreement? Without the Judge's signed order, the agreement is not binding.
    Answer Applies to: California
    Replied: 1/30/2014
    Law Offices of Daniel J Winter
    Law Offices of Daniel J Winter | Daniel J Winter
    First, you need to check with a lawyer to be sure you reaffirmed. We can check your court docket. If it was reaffirmed, you are personally liable for the debt. You might be able to file Chapter 13, but that depends on all the facts. Call a bankruptcy lawyer now.
    Answer Applies to: Illinois
    Replied: 1/30/2014
    Mark S Cherry, Attorney at Law, PC
    Mark S Cherry, Attorney at Law, PC | Mark Cherry
    You should seek advice on the feasibility of filing a chapter 13 with a "Cram Down" aka "Strip Down." Of the second mortgage
    Answer Applies to: New Jersey
    Replied: 1/30/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    No. Assuming the reaffirmation agreement was properly signed and filed at court it is binding. Did you have a lawyer for your bankruptcy? If you did, you might want to review whether the lawyer approved the reaffirmation agreement and ask him why he believed it was in your best interest. If you did not have a lawyer, this may be one of the reasons why it would have been a good idea. It may be possible to try to negotiate some sort of modification or settlement on the debt. Or, it may make sense to explore the option of hiring an experienced lawyer and filing a chapter 13 bankruptcy to discharge that obligation once you become eligible to do so.
    Answer Applies to: Colorado
    Replied: 1/30/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    If the Court approved the reaffirmation, you have 60 days from that date to rescind your consent to that agreement. After 60 days, it is too late to do anything. However, if there is no court order approving the reaffirmation, there is no valid reaffirmation.
    Answer Applies to: Nevada
    Replied: 1/30/2014
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