QUESTION
In a Chapter 7 Bankruptcy, when I pay it off is it truly mine and they can't claim anything?
Asked on Feb 28th, 2013 on Bankruptcy - Texas
More details to this question:
I just finalized my chapter 7 bankruptcy last week. I wanted to reaffirm my car and home and the car reaffirmed without issue but my home did not. The mortgage (Bank of America) came back with a higher interest rate on the paperwork than what it originally should be and with so many tries in getting them to correct the rate they continuously delayed and never agreed as the paperwork was signed on my part but not processed on their end and I had no choice but to continue with chapter 7. I changed the rate on their forms to what it should be and initialed everywhere the rate was mentioned. My current attorney’s firm had never experienced this issue with the rates not matching but said I should have no worries as long as I keep making payments as I want to keep my home. My question when I pay it off is it truly mine and they can't claim anything? Or if I choose to sell at some point would I have any issues? Also as she suggested would there be any issues to move my mortgage to another bank as I no longer want to give BOA my business for trying to play dirty?
3 ANSWERS
I agree with your attorney. From the sound of things, it is a good thing you did not reaffirm that loan. I would start trying to find someone to refinance with right away and keep looking until you find someone.
Answered on Mar 12th, 2013 at 7:41 PM
When you pay off your mortgage, assuming that no other creditor had a lien on your property, it will be truly yours. Most bankruptcy attorneys agree that there is no good reason to ever reaffirm on a home mortgage and indeed many mortgage lenders have stopped trying to persuade bankruptcy debtors to do this.
Answered on Mar 04th, 2013 at 2:14 PM
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You shouldn't have any problems. In my jurisdiction I would have filed a motion to have the judge rule the mortgage company waived any right to take adverse action (like failing to report your payments to a credit bureau, etc.) due to failure to execute a reaffirmation agreement because it was their fault none was ever filed. But don't worry it's still your house.
Answered on Mar 01st, 2013 at 11:40 PM