QUESTION
Are there cases where a re-modification is an amount to reaffirming a loan?
Asked on Jul 23rd, 2013 on Foreclosures - North Carolina
More details to this question:
My house is discharged in a Chapter 7 Bankruptcy 4 years ago. I have had 2 mortgage modifications since but has not reaffirmed. My mortgage company would periodically send me an account summary letter that details the principal balance and interest to my loan. It states "Since you have received a discharge of this debt in a bankruptcy proceeding and the debt has not been reaffirmed, you will not be personally responsible for the debt. However, the lien against the property securing this debt may remain on the property until the amount owing on the loan is paid. In addition, if the loan is delinquent, we may commence a foreclosure proceeding. I am current on my payments but my mortgage payments do not show in my credit reports, as though I do not own a home.
2 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
at
Law Office of D. L. Drain, P.A.
Update Your Profile
A loan modification is not the same as a reaffirmation in bankruptcy. You can provide any future creditors a report of timely payments from your mortgage company.
Answered on Jul 24th, 2013 at 12:05 PM
Corporate & Incorporation Attorney serving Huntersville, NC
at
Elliott Law Firm, P.C.
Update Your Profile
Since you did not reaffirm the debt, it is reporting accurately on your credit report. There is no requirement to reaffirm a mortgage debt in Chapter 7. So long as you continue to make the payments, the status quo remains the same and you retain the house.
Answered on Jul 24th, 2013 at 9:50 AM