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Reaffirmation - Need Answer ASAP

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    #1

    Reaffirmation - Need Answer ASAP

    I was discharged from Ch. 7 bankruptcy on 9/7/04 and my house was included in the bankruptcy. On my filing I stated I intended to reaffirm my house and have continued to make payments but never received or signed a reaffirmation agreement. I have received a letter from the mortgage company stating that I am not responsible for this debt becuase of the discharge but may continue to make payments.

    I no longer want the house. Can I just stop making payments, the mortgage company foreclose and I am still clear of this debt? Will I have to amend my filing?

    My attorney is out of the office for the next two weeks and I need an answer ASAP.
    Tags: None
    #2
    Originally posted by remeberingwhen
    I was discharged from Ch. 7 bankruptcy on 9/7/04 and my house was included in the bankruptcy. On my filing I stated I intended to reaffirm my house and have continued to make payments but never received or signed a reaffirmation agreement. I have received a letter from the mortgage company stating that I am not responsible for this debt becuase of the discharge but may continue to make payments.

    I no longer want the house. Can I just stop making payments, the mortgage company foreclose and I am still clear of this debt? Will I have to amend my filing?

    My attorney is out of the office for the next two weeks and I need an answer ASAP.
    Just keep the lenders letter for record, and stop making payments toward the house. Typically a lender will never say NO to a debtor making good on defaulted debts.

    Good Luck!
    The information provided is not, and should not be considered legal advice. All information provided is only informational and should be verified by a law practioner whenever possible. When confronted with legal issues contact an experienced attorney in your state who specializes in the area of law most directly called into question by your particular situation.

    Comment

      #3
      i have a question regarding reaffirming your home
      when you went to court for your bankkrutcy
      did you have equity in the home where the trustee might want you to sell to repay the creditors?
      Last edited by bart; 10-05-2004, 01:38 PM. Reason: forgot info

      Comment

        #4
        answer to question

        when I went to court I told the judge I intended to keep the property which at that time was my intention. . . . since the discharge I have decided not to keep the property . . . i have actually spoken with my attorney's office now and they stated i could stop making the payments and the house would basically go into foreclosure and I was discharged of the debt.

        Comment

          #5
          re affirmation

          my concern is i go to file a 7 and i have at least 200,000 in equity that they might force me to sell it. I know that i can reaffirm it but does that also put me into the situation that they might make me sell it?

          Comment

            #6
            equity

            200,000 in equity is definitely more than the allowed exemption for your state. You can check your state's exemptions at various web sites on the net. And yes, with that much equity,the trustee would take the house and sell it to pay your creditors. you can avoid losing your equity and/or having to borrow against it by filing a chapter 13 and not a 7.

            Comment

              #7
              what could happen if i ride out 10 years and just not file anything?
              i know i wont get any credit i am fortunate that my parents have taken out credit cards for me under thier name
              my concern is my home
              also how do they know what the worth of the home is do i have to get it appraised or do they?
              also what is the amount of eqity in the home to be considered safe? im assuming no equity in the home.i was hoping i could get a low ball appraisal
              Last edited by bart; 10-09-2004, 02:10 PM.

              Comment

                #8
                reaffirmation

                You run the risk of being sued by your creditors for non payment of the debt and it is possible that they could attach a lein on your property or garnish your wages, depending on the state you live in etc. If you have so much equity, why isn't an equity loan possible for you to consolidate all of your debt? The other option you have would be to get a free consult with a few BK attorney's in your area and find out what other options might be available to you that I am not thinking of. Good luck.

                Comment

                  #9
                  Rrockinggrandma

                  I Already Took Out $200,000 To Pay Off Creditors On My Home
                  If I Take Out Anymore Money My Loan Will Exceed My Income.
                  The House Is Now Deeded To My Father 2 Years Now As Well As My Cars. So I Dont Have Assets My Father Has Been Paying The Mortgage On The Home.

                  Comment

                    #10
                    Originally posted by bart
                    my concern is i go to file a 7 and i have at least 200,000 in equity that they might force me to sell it. I know that i can reaffirm it but does that also put me into the situation that they might make me sell it?

                    The homestead exemption allows you to keep property exempt as long as you do not have more then $150,000 in positive equity. In your case, it sounds like you do so I would think that you can plan on selling that home to repay some debts.

                    Comment

                      #11
                      Originally posted by bart
                      my concern is i go to file a 7 and i have at least 200,000 in equity that they might force me to sell it. I know that i can reaffirm it but does that also put me into the situation that they might make me sell it?
                      You can plan on having to liquidate the house the positive equity is way above the allowable limits of exemption. The homestead law exempts the prprty as long as the equity is less then $150 K

                      Comment

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