Posted on: 18th Nov, 2010 08:29 am
i filed chapter 7 bankruptcy last year. i was instructed by my attorney to stop paying my mortgage when the bankruptcy court decided to put my condo up for sale. after 4 months, the court took my condo off the market, because it did not sell and had few showings. i then called my mortgage company and received a total $ amount owed them for me to submit to catch up with my past-due mortgage payments. at no time did anyone, including both the mortgage company or my attorney, mention to me about "reaffirming my loan." i only learned about that term through internet websites. since my loan was not reaffirmed, the mortgage company has stopped reporting my on-time payments to all three credit bureaus and i no longer have access to my loan online through their website. my question is as long as i continue to pay my mortgage on time every month, is it necessary to reaffirm my loan? as i mentioned, because they no longer report it to the credit bureaus, my fico score doesn't seem to improve. another question is when i decide to sell my condo, will my not reaffirming the loan effect the sale negatively?
Hi Guest,
If you reaffirm the debt, then the lender will become liable to report the payments to the credit bureaus which will help you improve your credit score. If you don't reaffirm the loan, you're not personally liable for paying the dues. You can stop paying the dues. However, the lender will foreclosure the property in order to recover the balance amount.
If you reaffirm the debt, then the lender will become liable to report the payments to the credit bureaus which will help you improve your credit score. If you don't reaffirm the loan, you're not personally liable for paying the dues. You can stop paying the dues. However, the lender will foreclosure the property in order to recover the balance amount.