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What does it mean to reaffirm a mortgage?

Mesa, AZ |

My husband and I filed for Chapter 7 a few weeks ago. The only item we wish to keep is our home. We are current on our mortgage payments and will continue to make them as the bankruptcy progresses.

Can you please advise what it means to reaffirm this debt? I've seen various definitions as well as various opinions as to whether or not we need to follow through with the reaffirmation.

Any help will be very much appreciated! I will also ask our atty. but insomnia led me here tonight.

Attorney Answers 5


  1. Best answer

    The big deal here is that if you sign a reaffirmation agreement, and the judge allows it, you agree to be liable for that debt like the bankruptcy never happened. The reason this is not in your best interest it because the future is unknown. If your financial situation worsens, or disaster strikes, you could find yourself facing a foreclosure or short sale in the coming years where you are struck with a deficiency that could have been dealt with during the bankruptcy.

    Bankruptcy has sufficient negative aspects to it that you should take advantage of the positive. I strongly discourage reaffirmations for real estate. It is simply rarely in your best interest.

    This firm is in the business of helping people and companies file for bankruptcy protection. Therefore, the bankruptcy code requires that we call our firm a "debt relief agency." This information is provided for general information purposes only and is not intended to be a legal opinion, legal advice or a complete discussion of the related legal issues. This advice is not intended to create a client - attorney relationship. Every individual's situation is different and you should seek independent legal advice from an attorney familiar with the laws of your state or locality regarding specific information.


  2. "Re-affirming" means that you are agreeing to be liable for the debt post-bankruptcy. If you are referring to the statement of intention, that is mainly to give creditors an idea about what you are intending to do with the property. Discuss the options with your attorney. He/she will know what is best for you to do.

    Best of luck.

    The information provided in this post is not "legal advice." Rather it is general information on common legal issues. If you have questions concerning your specific situation, it is always best to consult an attorney in your area.


  3. I am an attorney in Mesa and have filed a number of cases. I discourage client's from signing the agreements and judge's may grant a reaffirmation, but there is no guarantee.

    I volunteer to attend reaffirmation hearings with people in your situation.

    As long as you make your payments you will keep your house.

    In our jurisdiction, if the creditor wants you to sign, they will send you the agreement.

    If you don't receive one, then it is not a big deal to your lender.

    Good luck.

    Jim Webster
    www.jpwlegal.com

    1845 S. Dobson Rd. Ste 201
    Mesa, AZ 85202

    (480) 464-4667
    Jim@jpwlegal.com

    We are a debt relief agency. We help people file for relief under the Bankruptcy Code.

    Please contact me directly with document for a free 30 minute consultation to get more concrete advice. This is not legal advice. I don't have enough information to give actual legal advice. I can only take the limited information presented and provide a framework to know how your situation may turn out. I may have questions that bring up issues you did not think were important but make a big difference.


  4. There is no reason to reaffirm real estate loans.


  5. Please ask your attorney. Make sure they explain the anti-deficency law. That law is currently being fine-tuned by some current court decisons.

    This firm is in the business of helping people and companies file for bankruptcy protection. Therefore, the bankruptcy code requires that we call our firm a "debt relief agency." This information is provided for general information purposes only and is not intended to be a legal opinion, legal advice or a complete discussion of the related issues. Nor is this advice intended to create a client - attorney relationship. Every individual's factual situation is different and you should seek independent legal advice from an attorney familiar with the laws of your state or locality regarding specific information.

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