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Reaffirm or walkaway?

Posted on: 13th Feb, 2013 11:10 pm
i had filed bankruptcy around 2 years back and even received a discharge from it. at that time, i asked my lawyer to reaffirm my mortgage. now i contact the lender and applied for a refinance. when i checked the docs, i now found that my bankruptcy is not reaffirmed! what can i do to reaffirm the loan now? or can i simply walk away from the property?
You will have to re-open the bankruptcy in order to reaffirm your mortgage after it has been discharged. At present, as your mortgage is not reaffirmed, you can walkaway from the property. The lender won't be able to come after you for balance payments.
Posted on: 13th Feb, 2013 11:37 pm
Hi Guest,

I agree with what Niicss has said. In order to get the mortgage reaffirmed, your bankruptcy filing needs to be re-opened. This can be a lengthy process and will also require court's permission. In such a situation, walking away from the property can be a good option.
Posted on: 14th Feb, 2013 06:56 pm
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