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What does it mean to reaffirm the debt in a bankruptcy?
Ohio foreclosure
This is an actual comment for a client:
”We filed Bankruptcy In Oct 2005 did not reaffirm on advice of lawyer, last year from June until Dec 2006. I was in and out of hospital with kidney stones, did not realize how far behind we had gotten tried to get caught up but they sent back payment. I tried to contact HSBC to ask for loan modification they said no because we had a deferment in Sept 06 ( we didn't ask for)… they won't work with us individually. ”
In our opinion not reaffirming the house is not a good idea. If you don't reaffirm the house it's true that you and not all are no longer responsible for the debt, but it also means they will not work with you if you get behind on your payments. Since legally you're not responsible for the debt, the mortgage company illegally can not work anything out with you. The only way we can negotiate with your mortgage company and get your loan caught up is for you to reaffirm the debt. You will have to speak to your attorney and see if it is still possible to get the reaffirmation completed.
On the other hand if you don't reaffirm the debt and never get behind on your payments may be a good option for you. You never know what the future holds so it's a tough decision to make when the bankruptcy is filed.
Comments
My account was written off by Citi-Mortgage, but they still have a lein on the property. They have not contacted me ever since the foreclosure proceedings. Now, they have filed a BK, what am I supposed to expect? Can the government help and if so how can I get a release from the lein?
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