My mortgage company went out of business and sold my mortgage to a different company. I have made payments online for 3 months. I called to request that my statements be mailed to me. The mortgage company is saying that they cannot send them because we have a discharged chapter 7 bankruptcy from 2 years ago. They said that we need to send them a reaffirmation letter, saying that we confirm this debt. Our house was only listed as an asset on our bankruptcy. I contacted my attorneys and they said that they never request a reaffirmation letter. And to never sign something like this. The mortgage company want me to reopen my bankruptcy to get this letter. Legally can they not send my statements to me?
The mortgage company is allowed to send you statements, but many do not do so because they are afraid of being accused of violating the bankruptcy stay.
You do not want to sign a reaffirmation agreement. Such an agreement would make you personally liable on teh mortgage note once again and there is no reason to undertake this risk. Try having your bankruptcy attorney provide a letter authorizing the bank to provide statements.
I am hearing this same complaint from many of my clients. In addition, my clients are unable to access the website of their mortgage company in order to make payments online.
A mortgage company has no legal obligation to bill you every month. Back when I bought my first house, I got payment coupons annually to help me remember my account number and the exact amount of my monthly payments.
The mortgage company is using your bankruptcy as an excuse to try to cooerce you into signing a reaffirmation. A reaffirmation isn't necessary to retain real property & in this economy, isn't in your best interest. It is only in the best interest of your bank. Your attorney has given you good advice!
I am informed that some mortgage companies will process payments by phone for no additional charge for customers involved with bankruptcy. Call your current mortgage servicer & be pleasant - possibly someone will help you find an alternate way to resolve the problem you are presently facing.
Hope this perspective helps!
Chapter 7 Bankruptcy Attorney
I agree with the information in the earlier comments and apparently given by your attorney. You mention that the mortgage company wants the case re-opened so that the mortgage debt can be reaffirmed.
The bankruptcy code contains specific provisions that may require reaffirmation of debt secured by personal property if the collateral is to be retained. But there is no bankruptcy code provision requiring reaffirmation of debt secured by real estate. Hence, bankruptcy judges in Colorado will not approve a reaffirmation "putting you back on the hook" for debt secured by real property, and the judges will not re-open a case to consider a reaffirmation either (a) that is secured by real estate or (b) that should have been completed before the reaffirmation deadline during the case.