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In Texas, if you do not sign and file a Reaffirmation Agreement for your mortgage and continue making payments on the house, pay home insurance and property taxes, can the bank turn around in let's say 8 years and take away the collateral, the house? Is the original contract null and void? What guarantees that you would receive the Deed after paying off the loan? Most comments on the Internet state that the creditor can still come and take the collateral whether the car or the house even if you continued to make payments. Thank you very much!
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Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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I've never heard of a mortgagee retaliating that way for failure to execute a reaffirmation agreement in a chapter 7 bankruptcy. The worst I've heard is one refusing to report your payments to a credit bureau.
Answered on Feb 12th, 2013 at 2:43 PM
Bankruptcy Attorney serving Dallas, TX
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Polk & Associates
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The rules about reaffirming a HOUSE are totally different from the reaffirmation rules relating to a CAR. So don't read on the internet a comment saying they could take the car, and then think that means they could take your house. Instead, take a look at the section of the bankruptcy code that governs reaffirmation. You'll see in there that reaffirmation agreements are for PERSONAL property (like cars, furniture or jewelry). Your house is not personal property, it's REAL property. Completely different animal.
Answered on Feb 08th, 2013 at 3:26 PM