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Chapter 7 Debtor Did Not Reaffirm Mortgage

I have a concern about my house. I included my house in my bankruptcy. Bankruptcy has been discharged. I told my lawyers that I wanted to keep it. However, I didn't reaffirm yet. My concern is lets say I loose my job or an unexpected life crisis happens and I'm not able to make payments anymore. Can the mortgage company start the proceedings of a foreclosure if i get too far behind? I was told that the Chapter 7 would protect me from a foreclosure and i was advised not to reaffirm just in case something happens and I have to give the house back to the mortgage company. HELP




SUEBEEHONEY70

Posts: 4590
Credits: 65464.25

Sub: #1 Can you give us a little more background, please? It will help
Mon, 08/18/2008 - 15:24

Can you give us a little more background, please? It will help us answer your questions.

-Who told you the Chapter 7 would protect your house from foreclosure? Your attorney, or just someone you talked to?

Normally, only a Chapter 13 can stop a foreclosure from happening. In a Chapter 7, you either have to re-affirm the mortgage or surrender the property, unless your mortgage falls into the exemptions provided for by your state.

-Do you plan to reaffirm or are you just going to let the mortgage company foreclose?

I'm a little confused about your statement "I included my house in my bankruptcy" - yet later you talk about reaffirming the mortgage. Unfortunately, you can't do both - you either included the house in the bankruptcy, or you reaffirmed the mortgage. Can you shed a little more light on this?

The fact that you're saying you were told NOT to reaffirm in case you have to give the house back to the mortgage company makes me think that you may have surrendered the property in the bankruptcy - do you know if this is the case?

I hope your attorney has not misinformed you.

Please give us a little more info, and we'll be able to help you.

A journey of a thousand miles begins with a single step...and becoming debt free is a journey!




ladybug

Posts: 2757
Credits: 28243.95

Sub: #2 I am not even suggesting that I know anything about this subject
Mon, 08/18/2008 - 15:50

I am not even suggesting that I know anything about this subject but this is what happened in our bk 7 situation. I think because we owed more on our home at the time we filed that the mortgage co., didn't even bother having us sign a reaffirmation agreement, we are still living in our home and that was 5 years ago, however we were able to refinance it two years after bk.

I am with sue...I hope that your attorney didn't mislead you in anyway.




jlbx78
Posts: 1
Credits: 26

Sub: #3 SUEBEEHONEY70
Wed, 08/20/2008 - 04:24

Would you mind giving me your email address so I can go further into detail




goudah2424

Posts: 7938
Credits: 122480.75

Sub: #4 You can Private Message through the site - Just click on the PM
Wed, 08/20/2008 - 06:54

You can Private Message through the site - Just click on the PM button under the person's post you want to talk to.

How I make some extra cash

I earn at least $20 extra every month doing offers. And you don't have to pay a cent.




SUEBEEHONEY70

Posts: 4590
Credits: 65464.25

Sub: #5 Sorry about that, I didn't see your message here on the site unt
Wed, 08/20/2008 - 09:54

Sorry about that, I didn't see your message here on the site until just now. Please feel free to PM me if you have further questions.

A journey of a thousand miles begins with a single step...and becoming debt free is a journey!




Unregistered

Sub: #6 chapter 7/forclosure protection
Thu, 09/04/2008 - 17:31

Here's what happened with us. Our lawyer included our HELOC in the bankruptcy stating that, yes it is discharged, BUT the loan co more than likely will NOT forclose on the property as long as we are still making the payments. This is because (1) the property is worth less than the first mortgage and if they forclose it would only pay off the 1st & they would loose a boat-load of $$. (2) the bank on the HELOC still accepts the payment. Our lawyer said that doing this is a protection for us if we lose our jobs & cannot pay. We wouldn't be liable for the HELOC.
BTW, we are in CA.

Hope this helps and I made myself clear!




Unregistered

Sub: #7 lawyer did not ask or notify to reaffirm
Sat, 03/28/2009 - 14:25

we filled chapter 13 to keep house and car then our attorney suggested after 4yrs to convert to a 7 but he did not tell us to reaffirm our mortgage our ask us what we wanted to do when speciffically told him before we filled a 7 we want to keep our house other wise we did not want to do it can we sue him




Unregistered

Sub: #8 I am going to file ch 7 after a divorce- should I file on debts
Thu, 04/09/2009 - 05:51

I am going to file ch 7 after a divorce- should I file on debts and
a mortgage that was ordered paid by the former spouse which my
name was originally on?




Unregistered

Sub: #9 We just started the Ch 7 process. We are "current" on our payme
Mon, 04/20/2009 - 15:41

We just started the Ch 7 process. We are "current" on our payments on both our primary mortgage and HELOC. Our attorney said NOT to reaffirm either of them. They "will" get discharged per the bankruptcy.. but as long as we keep making the payments on both the mortgage and HELOC, those banks are happy (you get to keep living there). Also, like mom2_3kiddos said above, my attorney said it's actual protection (to not reaffirm) in case in the future you start failing to make the mortgage payments.. then you can just walk away.

Apparently, when you reaffirm you are somewhat signing a (another?) legal agreement to keep paying.. and you can get into more trouble later if you start failing to make your mortgage payments.

I still don't get it 100%, but I'm just listening to what my lawyer is advising me... I hope he isn't screwing me. LoL




Unregistered

Sub: #10 converting chap.13 to chap.7
Fri, 06/05/2009 - 18:14

i will be converting from 13 to a 7 soon , my attorney told that we couldn't discharge the car and house in a ch7 it is for unsecured debt only. so we have to reaffirm the house and car. which means we would have to make the payments .we were going to dismiss it all before we thought about converting it. is it better to convert than to dismiss a bankruptcy?




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