QUESTION
How do we reaffirm a mortgage on an investment property that was included in a bankruptcy that was discharged over 3 years ago?
Asked on Apr 10th, 2013 on Bankruptcy - Arizona
More details to this question:
We are trying to qualify for a new mortgage on a different home, and are being told that we can't get a new home loan because we never reaffirmed the mortgage on the investment property. We never lived in the investment property, but it was worth 50% less than was owed at the time of bankruptcy, so it was not liquidated. We just kept paying and finally got renters in it. We are in great shape financially now, but are being told that we can't sell the property or obtain a new loan for a different property until we reaffirm that loan on the investment property. We can't reaffirm because the case was discharged over 3 years ago. So now what?
8 ANSWERS
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Doesn't make sense to me that you can't sell the property after a chapter 7 bankruptcy, & no judge would have let you reaffirm if you were so upside down on it.
Answered on Apr 16th, 2013 at 1:30 AM
If you don't reaffirm on a mortgage before your bankruptcy is discharged, the law says you cannot reaffirm. Reaffirming on real estate is a terrible idea, so much so that many bankruptcy judges will not approve a reaffirmation on real estate under any circumstances. If you need to show that you are making current payments on the real estate in order to qualify to refinance or for other credit purposes, your best bet is to order an account history from the mortgage company showing when your payments were made.
Answered on Apr 11th, 2013 at 4:07 PM
Bankruptcy Law Business Attorney serving Asheville, NC
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Pitts, Hay & Hugenschmidt, PA
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Once a discharge is entered, you cannot reaffirm the debt.
Answered on Apr 11th, 2013 at 12:34 PM
Deborah F. Bowinski
You can't. What you can do is get a copy of your payment history which will reflect your current and on time payments made on the loan. If that is insufficient then find a new lender.
Answered on Apr 11th, 2013 at 12:33 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You should see a real estate attorney, it is going to be necessary to work out some form of accommodation with the mortgage lender on the rental property in order to straighten out this mess.
Answered on Apr 11th, 2013 at 12:33 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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That doesn't sound right to me. Either I need more information from you OR you need a new mortgage broker. If you're using the income from the investment property to qualify for the loan, why does this lender care about reaffirming a debt that was discharged and only exists on the property? If you're NOT using the income from the investment property to qualify for the loan, I am then MORE baffled!
Answered on Apr 11th, 2013 at 12:33 PM
You can attempt to reopen the case for the purpose of reaffirming the debt. However, please keep in mind that reaffirmation of a debt is a very important decision, therefore I would recommend that you consult with an attorney prior to doing this.
Answered on Apr 11th, 2013 at 12:32 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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It depends on the laws of the state where you live. Each state has different laws. You can also talk to your good bankruptcy attorney in order to determine your rights.
Answered on Apr 11th, 2013 at 12:32 PM