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If a mortgage company doesn't reaffirm during a Chapter 7 bankruptcy, what are our options? Does it become a foreclosure?

Alton, IL |

Wells Fargo didn't reaffirm our mortgage and our bankruptcy has been discharged. We're not sure what to do at this point? I know we can continue to pay our mortgage but from what we understand, it won't be reported to the credit bureau? If our mortgage lender won't refinance, what are our options? I'm assuming we can walk away since we are no longer liable for the debt, but will it appear on our credit report as a foreclosure? Can we walk away and try and get another mortgage or are there legal ramifications for doing that? We don't want to pay on a house that isn't going to be reported on our credit report, and at this point would rather move anyway. Knowing whether its going to reported as a foreclosure is our main concern... and we just can't seem to get a firm answer...

Thank you Mr. Lewis, for your fast and clear response...The only other thing we are unsure about is we stated we wanted a reaffirmation for the house during the 341 meeting in front of the Trustee. Just want to be sure that since we did that we aren't under any kind of responsibility of the debt? The one thing I am SURE of, is Wells Fargo never sent reaffirmation paperwork that we signed... Is it safe to say this was discharged even know we stated we wanted to reaffirm? My attorney said they never responded to her request...

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Attorney answers 3


If you did not sign a reaffirmation agreement, your liability on the mortgage note is discharged and you cannot be foreclosed upon personally. The surrender of the home post-discharge should be reported as surrendered in bankruptcy and should not show up as a foreclosure. Check your credit reports after surrendering the home back to Wells Fargo to ensure that there is no discrepancy, as errors must be removed per the Fair Credit Reporting Act.


Your debt is not reaffirmed or excepted from the discharge by stating your intention to the trustee at the hearing. The only way to reaffirm or prevent your loan from being discharged is by signing a reaffirmation agreement and filing it with the court.


You may be able to get the lender to report positive information by disputing the incorrect information on your credit report with the credit bureaus and by sending a Qualified Written Request to the lender asking for account history and other information that they would normally provide by statements.