I filed a Chapter 7 bankruptcy in 2009 and my attorney submitted a signed reaffirmation document with my lender. The lender never signed the reaffirmation agreement and do not report my mortgage as current even though I have never, ever missed a payment. They have, in fact, falsely reported a "Date of First Delinquency" and a "Date Major Delinquency First Reported". They report the debt as discharged. Can I force them to correct these untruths and begin reporting my mortgage "paid as agreed" again?
You're lucky that the reaff was never recorded. It is almost NEVER a good idea to reaffirm a mortgage! Your attorney should have told you that. With mortgages you simply retain and pay. Many lawyers consider it malpractice to reaffirm mortgages.
The one downside is that the mortgage is not reported on credit. That is also the plus. You have all the benefits and none of the responsibility. You can keep the home as long as you pay but if you ever can't pay, you can just walk, which in these days of underwater homes is wonderful. This is a plus and not a minus. (It doesn't help your report but helps you in every other way).
The mortgage is reporting things exactly correctly. And your attorney almost led you into a mistake, which fortunately you can't undo even though you seem to want to.
In answering you, I am attempting to communicate general legal information and am not representing you. Do feel free to call me at 404-768-3509 if you wish to discuss actual representation (the phone call also does not retain counsel; that requires an office visit and appropriate paperwork). In that a forum such as this provides me with limited details and doesn't allow me to review details and documents, it is possible that answers here, while meant to be helpful, may in some cases not be complete or accurate, and I highly recommend that you retain legal counsel rather than rely on the answers here. Any information in this communication is for discussion purposes only, and is not offered as legal advice. There is no right to rely on the information contained in this communication and no attorney-client relationship is formed. Nothing in this email is tax-advice. To ensure compliance with IRS Circular 230, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein.
Without directly answering your question, I have to say I strongly agree with my colleague Mr. Ashman. It is never a good idea to reaffirm mortgage debt discharged in bankruptcy.
You should be grateful that the bank's attorney failed to file the agreement in a timely manner.
Pipitone Law is a debt relief agency according to the U.S. Bankruptcy Code. We help people file for bankruptcy. This answer does not constitute legal advice. An attorney/client relationship has not been established until it is agreed in writing.
I agree that the (questionable) benefits of reaffirming a real estate loan are almost always outweighed by the risks. Reaffirmation of a real estate loan is never required and almost never a good idea.
The only information your lender should be reporting is that the debt has a $0 balance and was discharged in bankruptcy. There should be no payment history reported.
You can reach Harkess & Salter LLC at (303) 531-5380 or [email protected] Stephen Harkess is an attorney licensed in the state and federal courts of Colorado. This answer is for general information only and does not create an attorney client relationship between Stephen Harkess or Harkess & Salter LLC and any person. You should schedule a consultation with an attorney to discuss the specifics of your legal issues.
Just one other thing to add to the other answers. The fact that the mortgage is listed as discharged in bankruptcy takes that amount of debt off your shoulders as far as your credit report is concerned. This actually improves your debt ratio, which is an element of your credit score.
The above information is general in nature. In order to obtain more specific and legal advice upon which to base your important decisions, please contact our office directly for a free phone or in person consultation. Robert M. Gardner, Jr. Hicks, Massey & Gardner, LLP [email protected] 53 W. Candler St. Or 718 Oak St. Winder, Ga. 30680 Gainesville, Georgia (770) 307-4899 (770) 538-0555 gadebtlaw.com hicksmasseyandgardner.com serving metro Atlanta and all of Northeast Georgia Bankruptcy, Divorce, Personal Injury, Worker’s Compensation, Medical Malpractice, Adoption, Civil and Criminal Litigation
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