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I had my bankruptcy discharged a year ago. I contacted Wells Fargo to refinance my home for a lower interest rate after loan mod

Henderson, NV |

was denied twice. I'm paying 6 1/2 %. They said they would give me a lower rate if I reaffirmed the debt. I have been paying regularly on both first and second mortgage. How do I proceed?

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Attorney answers 4


You can't reaffirm a debt after discharge, it's too late, and it's not a good idea to reaffirm a mortgage again, anyway.

I think you'd probably have to file again at some point to reaffirm that mortgage.


Remember, you will be personally "on the hook" for any debt you incurr after your Bankruptcy filing. Meaning if you don't pay, you can be sued.

Having said that, if you owe more on your housethan it is worth, it may be a bad idea to put yourself back on the hook for this house.

If it is a good idea to refinance, have another lender or mortgage broker look at it. You should consult with a lawyer.


First you can't re-open your case to reaffirm a debt - at least not in my experience. Many lawyers advise their clients not to reaffirm any debts - there are good reasons for both sides and only the client after careful consideration can decide what is best for them.

Generally the HAMP guidelines do not prohibit a loan modification after bankruptcy. Although, many mortgage companies will not consider a loan modification if you are not late on your mortgage payments (even though the guidelines do not prohibit mortgage which are current to be modified). I advise my clients to try again once they have been denied a loan modification - they try again if denied again. I have seen modification after 5 or 6 attempts. So, don't take no for an answer. KEEP TRYING.

Finally, if you refinance your mortgage (rather than modify your existing mortgage) you are establishing liability under the new loan- that loan has not been discharged in bankruptcy. So, before you refinance, take a long hard look at your financial situation and make sure the liability is justified.

I hope this helps.
Steven A. Leahy

Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.


I would talk to another lender about refinancing in about a year and also apply for a loan modification to temporarily lower your interest. I have a friend that works in the real estate department of a local credit union who would be happy to talk to you once two years have passed. Call & speak to me personally & I will give you her contact info.

Most people in Las Vegas are underwater on their homes. If this is you, I would urge you to return to your bankruptcy attorney to discuss other strategies to save yourself some money.

Hope this perspective helps!

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