how do you reaffirm a mortgage after discharge and you cnnot contact your lawyer

And the only way to reaffirm your mortgage after discharge is to file to re-open your BK case. Your attorney is likely to strongly oppose this, and you should get in writing from your mortgage lender that they would not oppose it. But I really feel it would not be worth it, rebuilding your credit is the better way.

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Can You reaffirm a mortgage after bankruptcy?

Can You Reaffirm A Mortgage After Bankruptcy? Can You Reaffirm A Mortgage After Bankruptcy? If you own a home and file for Chapter 7 bankruptcy, your lender might ask you to sign a reaffirmation agreement. Here’s what it means, and why you may want to think twice.

How do I reaffirm my case after a discharge?

If you receive a discharge before you’ve decided on reaffirming, you must file a motion with the court, seeking permission to reopen your case. If the court grants your request, you then can file the reaffirmation agreement and seek the judge’s approval.

Can I reaffirm my mortgage without my lender's consent?

Reaffirming your mortgage may not be possible in all states and under all circumstances. It requires the consent of both your lender and the court. Your lender’s consent usually hinges on whether you’re current with your payments, but some lenders just don’t want to be bothered with the fuss of creating and signing a reaffirmation agreement.

What is a reaffirmation agreement in Chapter 7 bankruptcy?

If you own a home and file for Chapter 7 bankruptcy, your lender might ask you to sign a reaffirmation agreement. Here’s what it means, and why you may want to think twice. When you file for Chapter 7 bankruptcy, your personal responsibility for paying your mortgage will be wiped out. That doesn’t mean your mortgage disappears, however.

Can a reaffirmation agreement be filed after discharge?

Can you file a reaffirmation agreement after discharge? Once a discharge order has been entered in your bankruptcy case, you can no longer reaffirm any of the debts that were included in the discharge agreement. The same goes for if your case has been closed by the court.

Can I reaffirm my mortgage after discharge?

Secured debts like mortgages are still debts and therefore can be discharged through bankruptcy. But, the only way to keep the item securing the debt is to continue to pay for them. Reaffirmation agreements for mortgages are possible, but not necessary. They are, however, always subject to court approval.

What happens if mortgage is not reaffirmed?

Reaffirming the debt gives it new life -- you're once again legally obligated to pay it. If you don't make the mortgage payments, the lender can foreclose and your bankruptcy won't stop this from happening.

Can a bank refuse a reaffirmation?

The agreement is voluntary for you and for the creditor—the creditor may refuse to offer a reaffirmation. All parties need to move quickly to get an agreement reviewed, signed, and filed.

How can I reaffirm my mortgage after Chapter 7 discharge?

Reaffirming a mortgage debt requires a comprehensive multi-page reaffirmation agreement that must be filed with the court. The reaffirmation agreement also requires the debtor's bankruptcy attorney to indicate that he or she has read the agreement and that it does not impose any undue hardship on the client.

Can a lender refuse a reaffirmation agreement?

In Chapter 7 bankruptcy cases filed in California, the lender can repossess your vehicle if you refuse to sign a Reaffirmation Agreement. However, even if you do sign one, a reaffirmation agreement must be filed in the Chapter 7 bankruptcy case, and it must be approved by the Bankruptcy Court.

Can I refinance my house if I did not reaffirm?

The truth is that you do NOT have to reaffirm your loan to refinance. There is no law that says anything like that. The hurdle is not a law, it is just the bank's policy. They may have chosen not to offer to refinance to people who chose not to reaffirm.

Does reaffirming help credit?

Reaffirming has no effect on credit score S.D. Cal.

What happens when a mortgage is reaffirmed?

Reaffirming your mortgage means that you file paperwork that states that you affirm this debt regardless of your bankruptcy discharge. That protects your lender from losing out on the money they have invested in the property, and it also allows you to retain your ownership in the home and your accumulated equity.

Who files the reaffirmation agreement?

You or your creditor must file with the court the original of this Reaffirmation Documents packet and a completed Reaffirmation Agreement Cover Sheet (Official Bankruptcy Form 27).

What happens if a reaffirmation agreement is denied?

Either way - if the reaffirmation agreement is not approved, your personal liability is discharged. And - just like when the court denies approval of the reaffirmation - most lenders will simply keep everything the same, as long as you make timely payments and keep the vehicle insured.

How do I reaffirm a loan?

Reaffirmation is the process wherein you agree to remain responsible for a debt so that you can keep the property securing the debt (collateral). You and the lender enter into a new contract—usually on the same terms—and submit it to the bankruptcy court.

What is a reaffirmation agreement?

Reaffirmation agreements confirm a person’s responsibility for paying that burden, even after discharge of other debts. Filers who default will still owe the “deficiency balance” left on the mortgage note. A deficiency judgment allows banks to sue filers for the outstanding balance after a foreclosure sale.

What happens if you are forgiven for a mortgage?

Once forgiven, you are “absolved” and no longer personally responsible for paying the mortgage. Reaffirmation agreements, on the other hand, keep filers personally liable for making mortgage payments, even after a discharge. They essentially revive the mortgage as if the person had never filed for bankruptcy.

Why are mortgage lenders considered secured creditors?

Mortgage lenders are “secured” creditors because they can reclaim your property if you default on the loan. On the other hand, unsecured debt like credit cards and student loans are not backed by tangible property.

Can a judge dress down a mortgage?

In some states, reaffirming a mortgage is routine and judges gladly approve the agreements. In others, judges can dress down bankruptcy lawyers for even floating the idea. New Jersey and New York are examples. In such states, no attorney would prepare much less file a reaffirmation agreement destined to be rejected by the court.

Do judges approve reaffirmation agreements?

Judges ultimately decide whether to approve reaffirmation agreements on real property. Their stance on reaffirmation of mortgages, in turn, depends on the state. Bankruptcy courts across the country are split on the issue. In some states, reaffirming a mortgage is routine and judges gladly approve the agreements.

Can you reaffirm a mortgage in Chapter 7?

The reaffirmation of mortgage debts is possible in Chapter 7 bankruptcy but it's not necessary. Learn what a reaffirmation agreement is how it affects your home mortgage. Written by Attorney Serena Siew.

Can I ask my mortgage lender for payment history?

If you’re looking to refinance with a different bank, you can ask your mortgage lender for a payment history, but the new bank you’re working with may not give it as much weight as they would a credit bureau’s history of payments.

What does reaffirmation mean in bankruptcy?

Reaffirmation is a legal term, but it loosely means a new promise to repay a debt after bankruptcy that otherwise would be wiped out. You and the lender sign an agreement that’s approved by the bankruptcy judge, and it becomes binding on you after your case is completed.

Why won't bankruptcy judges sign a reaffirmation agreement?

In addition, a fair number of bankruptcy judges won’t sign a reaffirmation agreement because it’s not necessary in order for you to keep the property. If you’re hellbent on reaffirming the mortgage, be prepared to face some tough questions in your quest to convince the judge that it’s a good idea to do so.

Why is a promissory note filed as a public record?

It’s filed as a public record so that you can’t sell without satisfying the Promissory Note. More to the point, it is the Mortgage that the lender will use to foreclose on the property in the event that you fail to live up to your obligations under the Promissory Note.

What happens if you file for bankruptcy?

When you file for Chapter 7 bankruptcy, your personal responsibility for paying your mortgage will be wiped out. That doesn’t mean your mortgage disappears, however.

What happens if you don't pay your promissory note?

The lien stays against your property, and the lender will use it if you don’t make your payments. In that way, you’re still sort of liable on the Promis sory Note. If you don’t care about keeping the property, don’t make payments. But if you want to keep it, you need to keep sending your money.

Can you be held liable for a mortgage shortfall in California?

What it does mean is that your can’t be held responsible for any shortfall if you fall behind and the lender sells the property at a loss. In California, you can’t be held liable for the shortfall on a first mortgage anyway. But in New York as well as elsewhere, without a bankruptcy discharge the lender could sue you for the deficiency.

Do you have to sign a reaffirmation agreement before filing bankruptcy?

A reaffirmation agreement must be signed by both parties and approved by the bankruptcy court before the discharge is entered. Once the discharge is entered, the bankruptcy judge doesn’t have the authority to sign the agreement. If you’re going to do it, best to get the process started as soon as the case is filed.

What to do if you get discharged before reaffirming?

If you receive a discharge before you’ve decided on reaffirming, you must file a motion with the court, seeking permission to reopen your case. If the court grants your request, you then can file the reaffirmation agreement and seek the judge’s approval.

What happens if you don't reaffirm your mortgage?

If you don’t reaffirm, the account no longer legally exists so there’s nothing to report. This can make it more difficult to begin repairing your credit post-bankruptcy. Your lender probably won’t bother sending you monthly statements if you don’t reaffirm the mortgage.

How does reaffirmation work?

How Reaffirmation Works. Your bankruptcy discharge extinguishes the promissory note you signed at the time you took out your mortgage. You no longer owe it unless you reaffirm the loan, and you can’t keep the home unless you keep paying on the note even though you're no longer legally obligated to do so. Reaffirming the debt gives it new life -- ...

Can you reaffirm a bankruptcy agreement?

The bankruptcy court only has the power to approve your reaffirmation agreement if you have an open case and haven’t yet received your discharge. You can submit your signed agreement to the court during the proceedings. If you have an attorney and he signs it as well, you may be able to avoid a court hearing.

Can you default on a mortgage loan?

You generally must default on the loan before the lender will take such an action, but if you don’t reaffirm, you’ll live in a sort of legal limbo. Your lender might take your home even if you do make the payments because you're no longer obligated under the terms of the promissory note.

Can a judge reaffirm a mortgage?

Otherwise, be prepared to appear before the judge and answer some questions. According to the law firm of Shaev and Fleischman, some judges won’t reaffirm a significant debt like a mortgage when state law prevents the lender from foreclosing as long as you keep up with your payments.

Can you lose your home without a reaffirmation agreement?

It’s not likely your mortgage lender will foreclose if you refuse to reaffirm -- at least not on that basis alone -- but there remains an outside chance exists that you could lose your home without one.

How to add mortgage payments to credit report?

In order to get your mortgage payments added to your credit report, you must file a dispute with each bureau. Send to the complaint department of each credit bureau – address info can be found on their websites – and ask them to correct the information on your mortgage data. Circle the mortgage entry (s) on the credit report and state in the letter that are disputing the information about the circled item. Attach a copy of the credit report – hang on to the original.

How long does it take for a mortgage company to correct your credit report?

The credit bureau has 30 days to verify your assertions with the mortgage company. If the mortgage company doesn’t respond (and they may not if their payment history aligns with your assertions), the credit bureau has to take your information and use it to correct your credit report. Alternately, the mortgage company can voluntarily report the payments in response to your dispute. Either way, your report should be corrected.

How often do you have to report a mortgage payment?

If the fees are reasonable, you may want to pay for additional reports, so you have one for each six months of the year or one per quarter. This is necessary to substantiate your self-reporting, and the mortgage lender cannot withhold this.

What is a dispute on credit?

This is the basis for your dispute. A dispute tells the credit bureau that you disagree with an entry on your credit file and are requesting that they correct it.

Can you self report a mortgage?

But you can – and should – self-report to improve your credit rating, demonstrate your current on your loan, and protect yourself from predatory actions by lenders such as unlawful foreclosure. The mortgage lender is not breaking any laws by not reporting payments on an un-reaffirmed mortgage.

Can a mortgage survive bankruptcy?

Mortgages can survive Chapter 7 bankruptcy. Image Source: Flickr User American Advisors Group. If you are current on your mortgage payments and file Chapter 7 bankruptcy, you may have been advised by your attorney not to reaffirm your mortgage during the process – or your lender may have refused to reaffirm.

What happens after a debt is reaffirmed in bankruptcy?

After a debt is reaffirmed in bankruptcy, the borrower can again be sued for payment if the borrower defaults.

What is a reaffirmation agreement?

A reaffirmation agreement is an agreement made between a creditor and the debtor that waives discharge of a debt that would otherwise be discharged in bankruptcy. In California, there is no reason to reaffirm a mortgage debt which is secured by a first deed of trust on a person’s home. California’s foreclosure law provides ...

What happens if you don't file foreclosed on property?

This means that even if someone does not file bankruptcy and their first deed of trust mortgage holder forecloses their primary residence property, they would not owe any money to the bank after the foreclosure. Since there is no deficiency balance (remaining balance owing after foreclosure) whether or not a person has filed bankruptcy, ...

Can a bankruptcy judge reaffirm a debt in California?

Even if it was possible to reopen the bankruptcy case, vacate the discharge and reaffirm the debt, a bankruptcy judge in California is highly unlikely to sign the order reaffirming the debt. Clients often think that they did not include their house in their bankruptcy.

Can you reaffirm a mortgage loan after bankruptcy?

It is not possible to reaffirm the mortgage loan after the bankruptcy case has discharged and closed. The laws regarding reaffirmation require that debts be reaffirmed before the debtor receives a discharge. Even if it was possible to reopen the bankruptcy case, vacate the discharge and reaffirm the debt, a bankruptcy judge in California is highly ...

Can you collect money from a borrower after foreclosure in California?

California’s foreclosure law provides that a lender who forecloses a person’s primary home in what is known as a non-judicial foreclosure proceeding on a first deed of trust, cannot collect money from the borrower after the house has been foreclosed. This means that even if someone does not file bankruptcy and their first deed ...

Can you keep collateral in bankruptcy?

They can keep the collateral and continue making payments to the creditor or they can surrender the collateral back to the creditor and that debt will be discharged in the bankruptcy .

What happens if you default on a mortgage note?

If you default on the note, the bank cannot sue you for the deficiency if any upon foreclosure. A deficiency is the balance due on the note after sale of the property if the property is worth less than the amount owed.

Can a mortgage be discharged without an agreement?

Without an agreement the loan is discharged but the lien remains against the property. As long as you make the payments and stay current you get to keep the home. If payments fall behind and a foreclosure takes place the lender cannot come after you for any deficiency balance.

Can a lawyer reaffirm a mortgage?

Lawyers don't reaffirm debts, debtors such as you are the only ones who can reaffirm debts. Reaffirming a real estate loan is a pointless and risky thing to do. Reaffirming is agreeing to pay the loan and any deficiency should a foreclosure later take place. Not reaffirming doesn't prevent someone from refinancing, but it may prevent you from refinancing with your current lender. All mortgage companies are more picky than they used to be about qualifying someone for a mortgage loan. Check with your local credit union for more information on the requirements to refinance.

Can a mortgage be discharged if it is not filed with bankruptcy?

If you have signed and filed a reaffirmation agreement with the bankruptcy court then the debt is not discharged and if a foreclosure takes place you may still be obligated for any deficiency left on the loan. The fact that your mortgage is not being reported to credit bureaus is correct the debt is discharged.

Can you refinance with a credit union if you don't reaffirm?

Not reaffirming doesn't prevent someone from refinancing, but it may prevent you from refinancing with your current lender. All mortgage companies are more picky than they used to be about qualifying someone for a mortgage loan. Check with your local credit union for more information on the requirements to refinance.

Is it a good idea to reaffirm a mortgage?

The short answer is that it is almost never a good idea to reaffirm. Reaffirming makes you personally responsible on the note for the house. If you want your payments to show up on your credit report, you might need to send copies of your payment history in to the lender.

Is my mortgage being reported to credit bureaus?

The fact that your mortgage is not being reported to credit bureaus is correct the debt is discharged. You can, however, request information about your payment history from the lender and use that to demonstrate to a potential new lender that you have been making regular, on time payments. Report Abuse. Report Abuse.