More details to this question:
I'm stressing trying to figure out if I should reaffirm or not. I live in California my husband and I had to file for Chapter 7 because his job change lowered our inome. We have a 1st and 2nd on our home; we’ve always been current on our mortgage payments even as of today never late. We can still afford to make our mortgage payments, however our attorney said not to reaffirm because you never know what can happen in 5, 10 or even 15 years from now. She just said keep making your payments and you won’t have a problem. However, I feel more secure if I were to do a reaffirmation on my mortgage with my credit union. Everyone always talks about you have no liability so its great but no one talks about the consequences of not reaffirming. For example the banks will not report your payment history, you can’t refinance and what happens to your equity when you get some in a few years; do you lose it? Currently our house is upside down about $120,000 and I’m caught in a bind trying to figure out what would be best to reaffirm or not. My biggest thing is that I don’t want to lose my house and even though I make my payments I’m afraid one day the credit union will come and say we are taking your house even though you’re are current. Does California law protect me if I’m current and did not reaffirm?
4 ANSWERS
Would have to consult a California attorney. Most bankruptcy attorneys will not sign reaffirmation agreements if the property is far underwater.
Answered on May 21st, 2012 at 11:57 AM
I am a Connecticut attorney licensed in New York and do not know California law. However bankruptcy is federal. You should not reaffirm your mortgage. It is highly in advisable to reaffirm. The consequences of not reaffirming are very minor if any exist at all. It is still possible to modify a mortgage that has not been reaffirmed. You will not lose your equity. Your attorney is correct.
Answered on May 18th, 2012 at 1:17 PM
Information provided doesn't create an attorney/client privilege nor constitute an offer of services and is only general responses to hypotheticals
Bankruptcy Attorney serving Concord, CA
at
William Rubendall Attorney at Law
Update Your Profile
You will keep your home if it is current. Do not reaffirm the debt on the mortgage loans.
Answered on May 18th, 2012 at 12:04 PM
Criminal Defense Attorney serving Deltona, FL
at
R. Jason de Groot, P.A.
Update Your Profile
So you expect to get free advice from attorneys, after not following your own attorney's advice. You do not want to reaffirm the mortgage. You see, it does not work in your actual best interest to reaffirm. As long as the bank receives their money there will be no reason to foreclose. The debt will be discharged in the bkr unless you reaffirm. If you reaffirm and later are unable to pay, the debt will still be discharged and they would not be able to come after you for a deficiency judgment. This question appears as a Florida question.
Answered on May 17th, 2012 at 3:05 PM