What can I do if mortgage was not reaffirmed? 16 Answers as of June 06, 2013

We discharged a vehicle and several credit cards but intended to reaffirm our home. Our attorney advised at the meeting of creditors to contact the mortgage company to see if we needed a reaffirmation agreement but did not tell us there was a deadline to do so. Our bankruptcy was discharged in April. I contacted the mortgage company who told us that the debt was discharged, not reaffirmed, that they do not have any record of contact with our attorney, and the attorney hasn't returned my calls.

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Law Office of Michael Johnson
Law Office of Michael Johnson | Michael Johnson
You can file a motion to reopen file and execute reaff. If judge allows it. You should only do this if you are looking to attempt to modify your mortgage as you can still pay and keep your home without reaff
Answer Applies to: Florida
Replied: 6/6/2013
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
This scenario is becoming a nightmare - the banks are making this crap up. There is NO requirement under the bankruptcy code to reaffirm mortgage debt. Your lawyer did nothing wrong. I'm looking for a debtor to get letter to the effect that reaffirmation is required to refinance. Then I'm going to sue that lender.
Answer Applies to: California
Replied: 6/6/2013
The Law Offices of Deborah Ann Stencel | Deborah A. Stencel
Reaffs should be filed within 45 days of the meeting of creditors. Your attorney would not have called the mortgage company for a reaff because the mortgage company would not talk to him/her without your prior authorization. In general, creditors that want reaffs send them automatically to the attorney when the notice of bankruptcy is received. I tell my clients at the 341 if I haven't received a reaff by then, the company won't be sending one. If my clients want one, they are told to call and have it sent to my office for review. Now that your case is discharged and closed it is too late to sign a reaffirmation agreement. The upside to a reaff is that you get positive credit reporting from the lender (assuming you pay on time). The downside is that you are once again personally obligated on the loan as well as it being a lien on your real property. Most people in your situation continue their payments as scheduled without issues.
Answer Applies to: Wisconsin
Replied: 6/5/2013
Law Offices of David A. Tilem | Michael Avanesian
You have to have really great facts to get your home reaffirmed. Things like, you have a lot of equity in the home, etc. If you do, you can get a lawyer to do this for you. The chance that the judge will accept the reaffirmation really depends on equity and how much money you make and some other factors. This is a hard thing to accomplish because Judges usually do not want you to have any debt after you get your discharge.
Answer Applies to: California
Replied: 6/5/2013
Stuart P Gelberg
Stuart P Gelberg | Stuart P Gelberg
The vast majority of attys (in my opinion) do not recommend a reaffirmation of a mtge. Just stay current.
Answer Applies to: New York
Replied: 6/5/2013
    Law Office of Susan G. Taylor
    Law Office of Susan G. Taylor | Susan G. Taylor
    Agreement originates with the creditor, & the attorney doesn't normally ask for it (although, in this case, he may have agreed to do so). Don't know how much equity you have in the home, so can't say whether or not it was a good thing that you didn't reaffirm.
    Answer Applies to: Texas
    Replied: 6/5/2013
    Gregory J. Wald, Attorney at Law
    Gregory J. Wald, Attorney at Law | Gregory J. Wald
    You don't need to reaffirm a loan that is secured by a mortgage. You can just keep sending the payments to the mortgage company and as long as you keep the payments current you will be able to keep your home.
    Answer Applies to: Minnesota
    Replied: 6/5/2013
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    You did not follow up and do what the attorney requested, you are in a position that you will have to "re-up" with the mortgage company post bankruptcy, if THEY will agree.
    Answer Applies to: Michigan
    Replied: 6/5/2013
    Law Offices of Terrell Monks
    Law Offices of Terrell Monks | Terrell Monks
    Just make your house payments and live there.
    Answer Applies to: Oklahoma
    Replied: 6/5/2013
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    You don't need to do anything but make your mortgage payments on time to retain your real estate. Reaffirmation is not required to keep real estate and many bankruptcy judges will not approve a reaffirmation of a real estate loan.
    Answer Applies to: Nevada
    Replied: 6/5/2013
    Richard L. Hirsh, P.C. | Richard L. Hirsh
    Reaffirmation is a two edged sword. It makes you liable again on the mortgage note. If your house is "underwater" then reaffirmation is risky, expeicallyif your finances do not improve. I understand however that if you do not reaffirm the mortgage copanies do not report your payments to the credit bureaus. That is punitive behavior but I suspect not a violaiton of the applicable statutes.
    Answer Applies to: Illinois
    Replied: 6/5/2013
    Troutman & Napier
    Troutman & Napier | Gregory A. Napier
    If you have continued to make payments, then you should be able to keep the house. The loan will still get paid off and it will be yours. The downside is that your payments will not be shown on your credit report so it will not help your credit score. It also will not hurt you score. You also will likely not be allowed to refinance your loan with your current loan company. The loan company does not have to reaffirm the debt, but if they are willing to, you must re-open your bankruptcy case to do this.
    Answer Applies to: Kentucky
    Replied: 6/5/2013
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    You would have to reopen your case to try to file a reaffirmation agreement but you should see who was your judge because most judges will not allow a reaffirmation on a mortgage.
    Answer Applies to: New York
    Replied: 6/5/2013
    214bankruptcy.com | Rustin Polk
    As long as you make your house payments, you are allowed to keep your house. So I don't see what the signing of a reaffirmation agreement would do for you, other than reversing all the good you got from your bankruptcy case and putting a bunch of debt right back on you. There needs to be an upside before you do something like that.
    Answer Applies to: Texas
    Replied: 6/5/2013
    Bensamochan & Poghosyan LLP | Eric Bensamochan
    You should contact your attorney and ask him to file a "Motion to reopen your Chapter 7 case for the limited purpose of filing a reaffirmation agreement". It is not an uncommon motion and it is for good cause.
    Answer Applies to: California
    Replied: 6/5/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    In my opinion, a mortgage loan should never be reaffirmed - it is not required and in my view, it can cause far more harm than good in the long run.
    Answer Applies to: Colorado
    Replied: 6/5/2013
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