Was the reaffirmation legal and secondly, can we file chapter 13 to stop the foreclosure? 15 Answers as of October 14, 2014We filed chapter 7 in 2008 and was discharged in 2009. We were told that we had to reaffirm our mortgage loan to get a better rate/monthly amount. We signed the papers. However our attorney never signed anything. The courts never sent us paperwork regarding the reaffirmation being approved. A new servicer has taken over and we are in foreclosure status.
Ronald K. Nims LLC | Ronald K. Nims
You need to check with your attorney whether the reaffirmation was ever filed. If the reaffirmation wasn't filed, then you are not personally liable on the mortgage but the bank can still foreclose and sell the property because they have a lien on the house.
Answer Applies to: Ohio
GARCIA & GONZALES, P.C. | Richard N. Gonzales
You will have to call the Bankruptcy Court and look at the Court file. Look to see if there is a Court Order approving the reaffirmation agreement. Yes, you can file a Chapter 13 to stop the foreclosure. You can also discharge the majority of any other debt you may have, depending on your income and expenses. Meet with an experienced Bankruptcy Attorney. Be prepared to pay for the consultation. With a "free" consultation, you get exactly what you pay for!
Answer Applies to: Colorado
A Fresh Start | Dorothy G Bunce
If the court approved the reaffirmation, then the reaffirmation was legal. It would certainly be in your best interest to find out if the court approved the reaffirmation or if the creditor even filed the reaffirmation requesting approval. Many attorneys, myself included, refuse to sign off on reaffirmation agreements & many courts will not approve unnecessary real estate loan reaffirmation agreements. If you qualify for the Chapter 13 program, none of the information you provided regarding the reaffirmation will affect your ability to stop a foreclosure. But qualifying for this program is always problematic, especially if you don?t have competent representation.
Answer Applies to: Nevada
Idaho Bankruptcy Law | Paul Ross
Yes, you should be able to file a Chapter 13. You will need to make sure at least 4 years have elapsed since you filed, which it sounds like is the case. Without the proper time you would not receive a discharge. You will also need to make sure that the arrearage and other debts with your income will be contained in a feasible plan. Visit with an attorney to look at the budgets and make sure everything will work.
Answer Applies to: Idaho
R. Steven Chambers PLLC | R. Steven Chambers PLLC
You are confusing two common issues. The first is whether you have personal liability for this loan. Unless you reaffirmed, you do not have personal liability. The second issue is whether the bank can foreclose even if you did not reaffirm. The answer to that is yes, it can. By foreclosing it is only seeking to get its collateral (your house); it is not trying to collect from you personally. It might seem like the bank is trying to collect from you personally but the law doesn't see it that way. You pledged your house as collateral AND you agreed to pay the loan. The bankruptcy has eliminated your obligation to pay the loan (unless you reaffirmed) but the bankruptcy did nothing about the pledge of your house. That is still valid and the bank is within its rights to foreclose.
Answer Applies to: Utah
Garner Law Office | Daniel Garner
You would have to check with the court to see if the reaffirmation was approved. If not, it is not binding. And yes, you could file a chapter 13 to postpone a foreclosure but your chapter 13 plan would have to demonstrate how you can cure the mortgage arrears or it won't get confirmed and you will eventually lose the house anyway.
Answer Applies to: Oregon
Danville Law Group | Scott Jordan
It is impossible to say whether the reaffirmation was legal or not, without more information. Yes, you can file a Chapter 13 to catch up on your mortgage. You should consult with a local bankruptcy attorney to formulate the best possible plan for you.
Answer Applies to: California
Law Office of Andrew Oostdyk | Andrew Oostdyk
A Chapter 13 Bankruptcy will impose an Automatic Stay that will stop the foreclosure. But, are you current on your mortgage? If you are behind, the Chapter 13 will allow you to create a payment plan that will get you caught up with your mortgage, and the mortgage company will likely be ok as long as you continue to make your monthly mortgage payments and plan payments. If you are current, and the mortgage company is trying to foreclose due to not having a reaffirmed mortgage, the chapter 13 will delay the foreclosure for now, but you will need to find an alternate solution such as refinancing the mortgage or selling the property.
Answer Applies to: Texas