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Mortgage Debt Reaffirmation Necessary?

Posted on: 21st Mar, 2011 07:12 am
my chapter 7 bankruptcy was discharged in 12/08. my atty. never told me about reaffirming my 1st and 2nd mortgages. i actually learned about this term by reading posts on this website. i have always paid both mortgages on time and continue to do so. my question is, is it necessary to reaffirm or can i just continue paying, as usual? since mortgage has not been reaffirmed, what happens to any profit made in the event i decide to sell my home?
Hi emann!

Welcome to forums!

It is better to reaffirm the loan if you wish to save the property. If you reaffirm the loan, you become personally liable for paying off the mortgage. The lender also becomes liable to report the payments to the credit bureau which will help you in improving your credit scores. If you sell off the property, you need to pay off the loan in full. If there is any excess amount, then you will be able to keep it.

Feel free to ask if you've further queries.

Sussane
Posted on: 21st Mar, 2011 11:27 pm
Hi emann38123,

Welcome to Mortgage fit,

According to me you should reaffirm the property and thus you can again start your credit building......All the details have already been told by smithsussane but in addition to this I must say that being in touch with the mortgagefit forum will surely help you in future and thus save your thousands of dollars which could have wasted due to ignorance....

Knowledge is a power,make optimum use of it.

Feel free to ask any further query if you have.........

DIPA
Posted on: 22nd Mar, 2011 05:01 am
Thank you both for your responses. I did forget to ask one more question: Is there a time limit from the date of bankruptcy discharge to the time that I must reaffirm my home mortgage?
Posted on: 04th Apr, 2011 03:25 pm
Hi Ellen!

Welcome to forums!

You will have to reaffirm the mortgage when you're in bankruptcy filing. It might get difficult for you to reaffirm your mortgage once your bankruptcy filing is discharged. You'll have to re-open the bankruptcy filing in order to reaffirm the loan.

Feel free to ask if you've further queries.

Sussane
Posted on: 04th Apr, 2011 11:00 pm
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