reaffirming mortgage

[outnbout6]

Our chapter 7 bankruptcy was discharged in Nov. 2005. My husband and I were seeking to sell our home and purchase a smaller home but when I applied for a pre-approval on a mortgage loan, I found out that our current home was included in the bankruptcy in which we specifically told the attorney we did not want to do. He said that that only thing being discharged was our credit cards. Our mortgage is current and was current at the time of the discharge. Can anyone tell me what I should do now? What can happen if we sell our home, will we get to keep the equity?

[fsugirl]

I can totally answer this question for you because it happened first hand with us, but I live in Florida so I don't know if the BK rules are different here.

We were d/c from our BK in January of this year, and sold our home the end of January..Our house was reaffirmed in BK...We made it a point that our mortgage was not included in BK....By the time we sold our home the BK had already been d/c about 3 weeks and we got to keep all 65k that we made on the house no questions asked..But when I started disputing all of the items on our credit report in Feb. the mortgage showed on our credit report as included in BK. I about flipped ! It should have been saying something like "PAID IN FULL"...I called GMAC mortgage and they said they are "legally required" to show it as a BK because they were notified of the BK even though if you called and spoke with them or got a VOM (verification of mortgage) it clearly showed as "PAID IN FULL"...

This was a huge headache when we went to apply for a new mortgage. I would have to tell the entire story over and over, but we were just approved for a mortage last week with Countrywide Full Spectrum Lending.. All I had to do was write a letter saying why the credit report was showing that way, and they ordered a VOM (verification of mortgage) just to show that the account was not included in BK that the loan was paid off when we sold the home.

I hope I have made sense with what I was trying to say..I was in the exact same boat as you..I know how frustrating it can be

BEST OF LUCK TO YOU !!!

[MTG_BANKER_OH]

Our chapter 7 bankruptcy was discharged in Nov. 2005. My husband and I were seeking to sell our home and purchase a smaller home but when I applied for a pre-approval on a mortgage loan, I found out that our current home was included in the bankruptcy in which we specifically told the attorney we did not want to do. He said that that only thing being discharged was our credit cards. Our mortgage is current and was current at the time of the discharge. Can anyone tell me what I should do now? What can happen if we sell our home, will we get to keep the equity?

This is pretty common for the mortgage to say included in Bankruptcy. you should call the lender and make sure it was reaffirmed. They are not going to do anything to you unless you do not make payments to them. You should definitley call them and discuss this with them. They shoudl be reporting it as reaffirmed on yoru credit and they should be reporting your payment history it is a violation of the FCRA. let them know that and they shoud fix it. If it was not reaffirmed and you are still making payments you may want to refinance it to get it back in your name and on your credit. They can evict you if it was not reaffirmed and you miss a payment, again you should call them immediately.