Can lender offer a loan modification thats on a foreclosure and trick u into reaffirmation

Asked over 1 year ago - Chicago, IL

i am on the mortgage with co borrow beiing my sister i didint reaffirm after chapter 7 discharge if i sign a modification agreement through hamp am i being liable as to a reaffirmation agreement..

Attorney answers (6)

  1. Karen Jackson Porter

    Pro

    Contributor Level 12

    4

    Lawyers agree

    Answered . To truly answer that question, a lawyer would need to review the modification agreement. I do not think the mortgage company would be tricking you. A reaffirmation agreement only applies in a bankruptcy case and must be completed before discharge. If you did not reaffirm the debt and received a discharge, you no longer have personal liability for the debt. If you chose to make yourself liable for the debt after your discharge, by agreeing to a modification, it would be your choice. The mortgage company cannot force you to accept a modification. Were you planning to give up the property when you did not reaffirm the mortgage? If you have changed your mind and now want to keep the property, it may be worth it to accept the modification. Your best bet is to hire a foreclosure attorney to advise you.

  2. Tara Leigh Goodwin

    Contributor Level 16

    3

    Lawyers agree

    Answered . If it is truly a HAMP modification, done on the official HAMP forms, it should contain language stating that it does not create any personal liability if the loan was discharged in a bankruptcy, but you should have an attorney review it to be certain.

    The above response is not intended to create, nor does it create either an attorney-client relationship or an... more
  3. Scott Benjamin Riddle

    Pro

    Contributor Level 20

    4

    Lawyers agree

    Answered . You are perfectly free to sign new loan documents, that make you personally liable to the same lender, after a Chapter 7 discharge and the Bankruptcy Court need not rule on anything. Whether the specific documents you may be asked to sign actually do that requires reviewing the documents. You are only "tricked" if you make the choice to sign something without knowing what they say and what they mean.

  4. Alan D. Walton

    Pro

    Contributor Level 19

    3

    Lawyers agree

    Answered . No. The modification does not resurrect your liability. Only a decision of the bankruptcy court can do that.

  5. Diane L Gruber

    Pro

    Contributor Level 18

    2

    Lawyers agree

    Answered . Never sign any legal document without first showing it to an attorney.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662.... more
  6. Brian James Russell

    Contributor Level 3

    Answered . Your underlying obligation to pay the debt was discharged with the bankruptcy. At this point, there is nothing that you can reaffirm and arguably modify. However, we see a lot of modifications that are processed and approved which contain specific language saying the debt is not being brought back to life and the bankruptcy is not being disturbed. You definitely need to have an attorney look at the document and see how the specific language in your modification agreement will affect your situation.

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