QUESTION
What do I do if I have been told that I have to reaffirm my mortgage in order to refinance?
Asked on Apr 08th, 2015 on Bankruptcy - Michigan
More details to this question:
My chapter 7 bankruptcy was discharged in 2010. I never missed payments and have not been late or missed payments before or after bankruptcy.
10 ANSWERS
That's not true. Find another mortgage broker.
Answered on Apr 16th, 2015 at 7:46 PM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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That information is incorrect. If you are attempting to refinance a loan using a different lender, obtain a copy of a statement from your current lender. You will send them a written request to produce a statement showing payments since the bankruptcy filing. Once they provide this document, include it with your application for a new loan. The new lender wants to see that payments have been made and the current status of the loan. Understand that your loan was discharged in bankruptcy, your current payments are voluntary though necessary to avoid foreclosure. When you refinance, you pay off the old loan and get a new one. The new loan does not fall under the old bankruptcy protection because it is a new debt, incurred post bankruptcy.
Answered on Apr 10th, 2015 at 10:11 AM
Deborah F. Bowinski
You don't have to do anything. It is far too late to reaffirm a debt, but there is no reason to in the first place. Why would you allow a clerk in a mortgage company's office pretend to give you legal advice? If your current lender will not consider a refinance or modification, then find another lender who will.
Answered on Apr 09th, 2015 at 3:11 PM
2 Awards
You must file a motion to reopen your case and set aside the discharge to allow the court to approve the reaffirmation agreement. The reaffirmation agreement must be filed and noticed for hearing and an order approving the reaffirmation agreement entered. Then the clerk can reissue your discharge order and close your case. Unfortunately, this is a $1,500 endeavor.
Answered on Apr 09th, 2015 at 3:10 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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Reaffirmation agreements cannot be entered after discharge.
Answered on Apr 09th, 2015 at 3:09 PM
You do not need to reaffirm a mortgage to refinance, but your lender is saying that they will not refinance. So see another lender. This myth is a lie perpetrated by ruthless mortgage companies to penalize their customers for having filed bankruptcy.
Answered on Apr 09th, 2015 at 12:13 PM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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go to a different lender. You are not required to reaffirm, nor is it a good idea to reaffirm on your mortgage in a bankruptcy. Some lenders have internal "rules" that require borrowers to reaffirm. You can't change your 2010 case and reaffirm anyway. If the new lender is giving you problems, have your on-time payment history to show to them.
Answered on Apr 09th, 2015 at 11:24 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Something is odd here. Reaffirmations can only be filed before your discharge is entered. So it is too late to do a formal reaffirmation. Perhaps your refinance lender wants you to enter into some more informal agreement. If you possibly can, you should retain an experienced lawyer who knows a lot about bankruptcy to represent you in this matter. Good Luck.
Answered on Apr 09th, 2015 at 11:22 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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It's true you have to reaffirm a mortgage in order to refinance with the same lender. It's also true that you can't reaffirm after your bankruptcy case closed. A lender isn't allowed to make any effort to collect the debt including changing the terms of the contract, unless you reaffirmed during your bankruptcy. You can refinance with a different lender, just not the same one.
Answered on Apr 09th, 2015 at 9:52 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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The issue is who has rights to the property as, if you did not re-affirm then the rights went to the secured party. See an attorney.
Answered on Apr 09th, 2015 at 9:19 AM