How do I get my house back in my name after bankruptcy?

Question

I filed bankruptcy in 2010 and did not reaffirm my mortgage. I have continued to make payments on my home. The house has increased in value but I cannot get a lower interest rate or refinance the home because my "paralegal" did not tell me that I had to reaffirm my house. I never missed a house payment but had other outstanding debts that I could not pay. How do I get my house back in my name?  I have over 50K in equity that I cannot touch and bank is not willing to help.

Bruce Barnhart · Answer

Assuming that you had a no asset Chapter 7 case, the house should remain in your name.  If you are trying to refinance, request a payment history from your current mortgage company and provide the payment history to the potential new mortgage company.

Richard Gonzales · Answer

The house has always been in your name. Filing BK does not change that.  Find a different mortgage broker.

Melissa Botting · Answer

This problem is more prevalent in some parts of Texas than others. Having said that, there is no reason the bankruptcy changed the ownership of your house. Some of our judges will not sign reaffirmations for mortgages. A reaffirmation is a statement essentially that says 'I know I could stop paying on this in bankruptcy but I won't and I will be personally liable for the debt after the bankruptcy is over. The Texas constitution says that you can not be held personally liable for a mortgage. So, some bankruptcy judges say that the Texas Constitution prohibits them from approving a reaffirmation agreement on a mortgage. This becomes a problem because national mortgage servicing organizations do not like to deal with bankruptcy in the first place, let alone bankruptcies that need special handling due to the Texas constitution. If your judge does not grant reaffirmations on mortgages, you need to find a finance organization that will work with your circumstances or you may not be able to access your equity.

Ronald Nims · Answer

It appears that you are confused (not surprising given that you dealt with a paralegal rather than a lawyer), since the bank didn't foreclose on your house (I assume since you're still living there and paying the mortgage), the house was never taken out of your name.  The bank has a lien on the house but you're not personally liable on the mortgage.  You can't refinance or modify the mortgage with your current lender - because you have a bankruptcy discharge on that debt, the bank can't do anything but accept your voluntary payments.  You could refinance with another lender, the bank is still subject to all the normal non-bankruptcy laws on the mortgage including the right to pay it off.

Peter Lively · Answer

You are still on title to the property unless the lender has foreclosed. You can refinance or sell, if you want, despite that your current lender isn't communicating with you.

Daniel Garner · Answer

This is a common misconception perpetrated by the banks. They choose not to report your payments to the credit bureaus after you file bankruptcy because you have the right (even under Oregon law without filing bankruptcy) to walk away from the debt with no recourse by the bank against you personally. Typically, the courts frown on reaffirming debts on real property, so you're stuck in a no-win situation. The only solution you have is to demand a record of your payments since filing, and then supply that record to the credit bureaus, so that other lenders can see that you have faithfully made your payments. Given that information, some lender other than your current bank may be willing to refinance the mortgage at a lower interest rate.

Deborah F. Bowinski · Answer

You do not need to do anything to "get your house back in your name" after filing bankruptcy.  The house has remained in your name.  It sounds as though you may have used the services of a Bankruptcy Petition Preparer when you filed your case.  They are not "paralegals" necessarily, nor are they permitted to or qualified to offer you legal advice regarding any aspects of your case.  It is actually a good thing that you did not reaffirm your mortgage.  I can't think of any situations where it makes sense for a debtor to do so. If your current lender will not work with you to modify or refinance your mortgage loan then you should investigate other lenders.  If you have the income to qualify you for a loan, then you should be able to find a lender willing to do a refinance.

Dorothy Bunce · Answer

Really - you expected a paralegal to commit a criminal offense by giving you legal advice?  Not cool!

Marjorie Guymon · Answer

The house is in your name. Just go finance with another lender.

Rustin Polk · Answer

I am guessing that the reason your paralegal did not tell you that you had to reaffirm the house is because you are not required to reaffirm it.  In fact, reaffirming a mortgage as part of a bankruptcy case is usually a terrible financial move.  If you are dealing with a bank that does not understand that you still have valid ownership in the property then go to another bank.

Paul Ross · Answer

Use a different lender.

Patrick Currin · Answer

Your house was and has always been in your name, only your mortgage has not been reporting to credit services because your payment has been optional due to the fact your didn't reaffirm. You can access your equity only by selling.

John Brennan · Answer

See an attorney, but it may well be that due to your previous decisions you are effectively renting from the bank at this point.

Carl Silver · Answer

I am sure the house is still in your name. Try different banks.

Karen Porter · Answer

You cannot reopen a bankruptcy case to fix a failure to reaffirm a mortgage.  A debt has to be reaffirmed before the discharge is granted. You will need a brand new mortgage company to give you a brand new mortgage.  Your existing mortgage company can refuse to refinance a mortgage that you did not reaffirm.

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How do I get my house back in my name after bankruptcy?

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