HARP Refi after CH7 Discharge, Mortgage NOT reaffirmed?

[delphinus317]

Thank you for the responses!! My house is not underwater, but it is over the 80% LTV that HARP requires due to the market dropping. It's the HARP program that I'm looking to refinance under. If HARP doesn't care about reaffirmations, then, I will call around to other lenders to find out if there are any who are willing to work with my situation. I always planned to stay in the house, so if I can change my payments to include less interest & more principal to pay it off earlier, I'd like to do that. I'm actually glad reaffirming after discharge is not an option, that just seemed like it would be a logistical nightmare if that's what I had to do. Thank you so much!!!

[justbroke]

As for refinancing, you could certainly refinance a discharged debt. You just can't reaffirm a discharged debt. As an aside, I would make sure that you're not refinancing a home with which you are underwater! If so, I would make sure this HARP/HAMP/???? modification/refinance includes a principal reduction to bring the loan to current market value.

I don't know the details of HARP or if it requires the debt to be reaffirmed in a bankruptcy. That would actually be counterproductive and quite... foolish to reaffirm in bankruptcy with no guarantee of a HARP/HAMP refinance afterwards!

Your problem is specifically with the lender (or lenders) that you are working with. You will need to look at more lenders to see which has less stringent underwriting requirements. HARP, itself, doesn't care about reaffirmations. In fact, the entire HAMP program (under which HARP sits) allows modifications and refinances on debt that was not reaffirmed. The problem is that HAMP has always been a voluntary program with the banks and this is why it has failed miserably (in my opinion).

[LadyInTheRed]

No, you cannot reaffirm a debt after the case is closed. A reaffirmation agreement must be entered before discharge.

Bankruptcy code Section 524(c) lists the requirements for reaffirmation:

(c) An agreement between a holder of a claim and the debtor, the consideration for which, in whole or in part, is based on a debt that is dischargeable in a case under this title is enforceable only to any extent enforceable under applicable nonbankruptcy law, whether or not discharge of such debt is waived, only if—
(1) such agreement was made before the granting of the discharge under section 727, 1141, 1228, or 1328 of this title; .....

The entire text is at http://www.law.cornell.edu/uscode/text/11/524

[delphinus317]

Does anyone have any experience or knowledge of the process with refinancing a mortgage through the HARP program for a mortgage that is current (never late), was not reaffirmed, and was included & discharged in Ch7?

My current 30-year mortgage is 5.5%. It meets all requirements to be refinanced through the HARP program (Fannie Mae) to a 15-year 3.125% (possibly lower); however, the mortgage lenders are telling me I have to reaffirm the mortgage before they can start the process. Otherwise, it won't get approved in underwriting. I understand the concept since I didn't reaffirm & technically the mortgage doesn't "exist".

My Ch7 was discharged/closed in February 2012, and the new HARP regulations removed the bankruptcy post-discharge waiting period for refinancing in March. Is it even possible to reaffirm a mortgage after a Ch7 case is discharged/closed? Has anyone refinanced a mortgage without reaffirming it or reaffirmed it after discharge?

This would be an incredible step for me in achieving a solid plan for retirement, and I'm desperate to make it work if there's any way to get through or around the red-tape.

Thank you!!