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Company Loan Type APR Est. Pmt.

Reaffirmation Agreement

Posted on: 17th Aug, 2009 01:58 pm
I filed bankruptcy and signed a reaffitmation agreement. I lost my job and am now unable to make my payments. Will I be forclosed on or will I be forced to pay the debt in full no matter what.
Hi Lertman,

As you've signed the reaffirmation agreement, you became personally liable for the mortgage dues. As you are unable to pay the mortgage dues now, the lender will have the right to foreclose the property and sell it off in order to recover the dues. In my opinion, you should contact the lender and inform him about your hardship. You can even negotiate for a loan modification and check if the lender agrees to it.

Thanks
Posted on: 17th Aug, 2009 07:38 pm
I will do that but it could you explain why I would have received a collection notice from a collection agency. Is this part of the foreclosure process?
Posted on: 18th Aug, 2009 07:16 am
Hi Lertman,

You will receive a notice from the collection agency if the lender has charged off your loan to them. I think you should speak to your lender and clarify if your loan has been charged off or not.
Posted on: 18th Aug, 2009 10:49 pm
Could you be more specific as to what "charged off" means? Is the property still mine? If I can't pay the collection agency what will happen?
Posted on: 22nd Aug, 2009 06:45 am
Hi Guest,

A lender will charge off the loan when he is not interested in collecting the dues from you as you've defaulted the loan. In the process of charge off, the lender will sell your loan to a collection agency. The collection agency will in turn collect the dues from you. If you do not pay the dues, the collection agency can sue you for the amount. To know more about charge off, check out the following page:
http://www.mortgagefit.com/know-how/secondloanchargeoff.html

Thanks
Posted on: 23rd Aug, 2009 09:03 pm
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