Can I Sell my House without a reaffirmation agreement?
Yes, you can sell your house if you want to. The fact that you very wisely did not sign a reaffirmation agreement on your mortgage thereby putting yourself right back on the hook for personal liability on that very large debt doesn't mean you aren't allowed to sell it.
What happens if I don’t reaffirm my mortgage?
Having not reaffirmed your mortgage will not affect your ability to sell your property.
Should I reaffirm my home loan after filing bankruptcy?
You aren't required to reaffirm a home loan in bankruptcy to keep it and be able to sell it later. So long as you are current, you can sell your home. If you are upside down on the loan, you will need permission from the lender to short sell the property, but you may handle the home as you would if you had never filed bankruptcy to begin with.
Can I Sell my House to pay off my mortgage?
You can definitely sell the home, you just need to use enough of the proceeds to pay off the mortgage after the sale. * This will flag comments for moderators to take action. Absolutely!
What happens if you don't reaffirm your mortgage?
Can you sell a house if you can pay all the debt?
Can you sell a home if you own it in Chapter 7?
Can you show your mortgage payment history on credit report?
Do you have to sell a house if you have a lien on it?
Can you sell a home after reaffirmation?
Can you sell a house if you still own it?
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About this website
What happens if you don't reaffirm your mortgage?
Even if you continue to make timely payments, your lender can still take your property back if you fail to reaffirm the debt. While many lenders are happy to receive your payments and let you keep the property without a reaffirmation, some (especially certain car lenders) will still repossess your property.
Should you reaffirm mortgage Chapter 7?
Most Debtors Should Not Re-affirm a Mortgage Possible changes could include a lower interest rate, a lower monthly payment, placing arrears on the back end, deeming a default as cured, etc. However, if your payments are current, there is usually no tangible benefit to reaffirm a mortgage loan.
How long do you have to reaffirm a mortgage?
If you want to file a reaffirmation agreement, you need to do so within 60 days of the first date of the meeting of creditors.
What does it mean when a loan is not reaffirmed?
But if you do not reaffirm the loan at all, then your payments will not show up on your credit report at all; it will appear instead that the loan has been wiped out (discharged). 2) Invoices and Statements. If you do not reaffirm your loan, then your lender will not send out monthly loan statements.
Can I refinance if my mortgage was not reaffirmed?
Not reaffirming doesn't prevent someone from refinancing, but it may prevent you from refinancing with your current lender. All mortgage companies are more picky than they used to be about qualifying someone for a mortgage loan. Check with your local credit union for more information on the requirements to refinance.
What does no reaffirmation agreement mean?
A reaffirmation agreement is a contract between a debtor and a creditor to keep the creditor's debt out of the bankruptcy. This means that the debt in question will not be discharged, and you will have to repay it after the bankruptcy.
Is a reaffirmation agreement necessary?
No, you are not required to reaffirm a debt by any law. Only agree to reaffirm a debt if it is in your best interest. Be sure you can afford the payments that you agree to make.
Can a mortgage be reaffirmed after discharge?
It is not possible to reaffirm the mortgage loan after the bankruptcy case has discharged and closed. The laws regarding reaffirmation require that debts be reaffirmed before the debtor receives a discharge.
What happens after reaffirmation agreement?
This gives you a “fresh start.” A reaffirmation agreement is where you agree to pay a debt even though you could have eliminated the debt in your bankruptcy case. When you reaffirm a debt, you continue to be legally responsible for paying it back. This gives the creditor some legal rights.
Why would someone choose to reaffirm a debt?
Reaffirming a debt allows you to keep the property securing the debt, which can be a real advantage in some cases. It also allows you to avoid having to come up with a lump-sum payment to keep the property.
What happens when a mortgage is reaffirmed?
Reaffirming your mortgage means that you file paperwork that states that you affirm this debt regardless of your bankruptcy discharge. That protects your lender from losing out on the money they have invested in the property, and it also allows you to retain your ownership in the home and your accumulated equity.
Does reaffirming help credit?
Reaffirming Helps Rebuild Your Credit So timely payments won't help you establish a good credit history after bankruptcy. If you reaffirm the loan, your lender will continue reporting payments.
Does reaffirming help credit?
Reaffirming Helps Rebuild Your Credit So timely payments won't help you establish a good credit history after bankruptcy. If you reaffirm the loan, your lender will continue reporting payments.
Can you reaffirm a mortgage after discharge?
It is not possible to reaffirm the mortgage loan after the bankruptcy case has discharged and closed. The laws regarding reaffirmation require that debts be reaffirmed before the debtor receives a discharge.
Why is my mortgage Not on my credit report after bankruptcies?
In Chapter 13, your liability on your mortgage is an exception to the discharge. The mortgage loan is not discharged as a personal obligation. And therefore, there is no legal bar to the servicer reporting your payments, and every danger should they not report.
Can a mortgage be discharged in Chapter 7?
Bankruptcy isn't good for your mortgage or any other aspect of your finances. Still, it doesn't have to be a monetary death sentence. A Chapter 7 bankruptcy wipes out your financial debt, including your mortgage, but you could lose your house.
If I Don’t Reaffirm My Mortgage Note, Is My House at Risk?
If my home was not reaffirmed, and paying my monthly payments can at anytime the mortgage can take my home.If an when the home is paid off will the home be mine or the mortgage company .If I wanted to buy another home so that my payments are reported, what could I do.
Can I Reaffirm My Mortgage in a Chapter 7 Bankruptcy? - Upsolve
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Why You Did Not Reaffirm Your Mortgage Loan in Bankruptcy
When a debtor does not reaffirm a mortgage loan, the lender will stop reporting the loan on the debtor’s credit report. This sometimes becomes an issue when someone later tries to refinance the mortgage loan on their home, and the new lender is asking them why their credit report does not show that they have been timely making their mortgage payments.
What Happens if I Don't Reaffirm My Mortgage After Bankruptcy?
Bankruptcy involves making a lot of decisions, some of which are trickier than others. Reaffirmation agreements, for example, are complicated by many pros and cons.It’s not likely your mortgage lender will foreclose if you refuse to reaffirm -- at least not on that basis alone -- but there remains an outside chance exists that you could lose your home without one.
Can we keep the home if we did not reaffirm the loan during bankruptcy ...
As long as the bank continues to accept payments on the home loan, they have to honor the contract and you can keep your home.If they refuse payments and start a foreclosure, then you can consider a Ch 13 to deal with the mortgage.
What does a reaffirmation agreement mean?
A reaffirmation agreement means that you are agreeing to pay a debt which otherwise would have been discharged in bankruptcy. Since you didn't sign a reaffirmation agreement on your mortgage, you're not liable on the debt but the lender still has a lien on the house. You can sell the house, but the mortgage would have to be paid off by your proceeds at closing. If the mortgage for more than the house is worth, then you can't sell it unless you get the bank to agree to a short sale.
Can you sell a house in Chapter 7?
You are free to sell the house providing that your Trustee is not trying to sell it. If you have already received an Order of Final Decree from the Court, this means that the Trustee is out of the picture and you can do with the house as you please. You hopefully understand, though, that the outstanding mortgage lien has to be satisfied in order for you to be able to convey clear title, and the way the lien gets satisfied is by paying it at closing. Although the mortgage debt is discharged in your Chapter 7, it would have to be paid in full at the closing for the sale to be consummated.
Can you sell a Chapter 7 case?
You can sell if you can find a willing buyer and if your Chapter 7 case is closed. The fact that you have received a discharge does not mean that your Chapter 7 case has been closed. If your Chapter 7 case is still open, you will need to obtain Court approval to sell.
Does reaffirmation of debt on house matter?
Yes, reaffirmation of the debt on the house would not matter. Do make sure bankruptcy trustee either abandoned any interest in house or it was claimed exempt and the bankruptcy case has been closed by the court.
Is the owner of a house still the owner?
Yes, you are still the owner of the house. Your personal liability on the mortgage that's has been discharged, but they still have a lien that must be paid from sale proceeds and you are still the owner.
Matthew Scott Berkus
1. Yes, you CAN sell your house. 2. If you can sell your house, pay off all the liens and there is still money left over, you get to keep the profits. The bankruptcy and that fact that you did not reaffirm doesn't change the fact that you still own the house. Best wishes.
Gary D. Bollinger
Although you can sell, a short sale might be an issue if you do not have sufficient equity to sell at a profit after deducting costs of sale.
What happens if Lisa stops paying the mortgage note?
If Lisa should stop paying the note, the mortgage company could foreclose on the property but Lisa’s personal credit would not be affected.
Is Lisa's home at risk?
As a practical matter, I do not believe that Lisa or her home are at risk – as long as she continues to send in her regular mortgage payment. Although Lisa’s personal liability to pay the mortgage obligation is gone, her property is still subject to a lien in favor of the mortgage lender.
What happens if you don't sign a reaffirmation agreement?
If you do not sign a Reaffirmation Agreement when the secured creditor sends you one, you run the risk of having the collateral repossessed following the closure of your Chapter 7 Bankruptcy case.
What Happens When You Reaffirm a Debt?
Once a Chapter 7 debtor executes a Reaffirmation Agreement, the lender or the debtor’s attorney files it with the Bankruptcy Court and the Court schedules a Reaffirmation Hearing.
What Does Reaffirm Mean?
Normally, a Chapter 7 debtor is discharged of debt and the secured lender can repossess a car or boat or other property (called “the collateral”) once the bankruptcy case closes, or sooner if the lender files a Motion for Relief from the Automatic Stay with the Bankruptcy Court. In many cases, however, the lender will not seek to repossess the collateral if you are up to date on the payments.
How Long Do You Have to File a Reaffirmation Agreement?
A Reaffirmation Agreement must be filed within 60 days after the first scheduled 341 (a) Meeting of Creditors. This deadline may be extended by the Bankruptcy Court.
What Happens at a Reaffirmation Hearing?
The judge will ask the debtor questions about his or her finances in order to determine whether entering into the Reaffirmation Agreement is in the debtor’s best interests. The judge’s primary concern is whether the debtor can realistically afford to make the monthly payments going forward.
Does Reaffirming Help Credit?
Yes! The lender will report your loan as current to the credit bureaus. If you do not reaffirm, the lender does not report payments you make in many cases, so making monthly payments without a Reaffirmation Agreement may not help rebuild your credit following your Bankruptcy case.
Should I Reaffirm? Can I Reaffirm?
If you are considering filing bankruptcy but are concerned about whether you should reaffirm any secured debt, or whether the collateral you want to keep has too much equity to reaffirm, contact an experienced bankruptcy attorney to schedule your free consultation. To be forewarned is to be forearmed! Knowledge gives you power to do the right thing.
What happens if you don't reaffirm your mortgage?
If you don’t reaffirm, the account no longer legally exists so there’s nothing to report. This can make it more difficult to begin repairing your credit post-bankruptcy. Your lender probably won’t bother sending you monthly statements if you don’t reaffirm the mortgage.
How does reaffirmation work?
How Reaffirmation Works. Your bankruptcy discharge extinguishes the promissory note you signed at the time you took out your mortgage. You no longer owe it unless you reaffirm the loan, and you can’t keep the home unless you keep paying on the note even though you're no longer legally obligated to do so. Reaffirming the debt gives it new life -- ...
What to do if you get discharged before reaffirming?
If you receive a discharge before you’ve decided on reaffirming, you must file a motion with the court, seeking permission to reopen your case. If the court grants your request, you then can file the reaffirmation agreement and seek the judge’s approval.
Can a bankruptcy judge approve a reaffirmation agreement?
The bankruptcy court only has the power to approve your reaffirmation agreement if you have an open case and haven’t yet received your discharge. You can submit your signed agreement to the court during the proceedings. If you have an attorney and he signs it as well, you may be able to avoid a court hearing. Otherwise, be prepared to appear before the judge and answer some questions. According to the law firm of Shaev and Fleischman, some judges won’t reaffirm a significant debt like a mortgage when state law prevents the lender from foreclosing as long as you keep up with your payments. Check with a local lawyer to learn where your state stands if you’re trying to make a decision.
Can you lose your home without a reaffirmation?
It’s not likely your mortgage lender will foreclose if you refuse to reaffirm -- at least not on that basis alone -- but there remains an outside chance exists that you could lose your home without one .
Can a lender foreclose on a default?
Your lender’s consent usually hinges on whether you’re current with your payments, but some lenders just don’t want to be bothered with the fuss of creating and signing a reaffirmation agreement. With or without one, their rights remain much the same -- they can foreclose if you default.
Can you default on a mortgage loan?
You generally must default on the loan before the lender will take such an action, but if you don’t reaffirm, you’ll live in a sort of legal limbo. Your lender might take your home even if you do make the payments because you're no longer obligated under the terms of the promissory note.
What happens if you don't reaffirm your mortgage?
The effect of no reaffirmation is that you do not have a personal obligation to pay the mortgage. You still are the titled owner and the mortgage is still a lien on the property so it must be paid in order to sell the property. Report Abuse. Report Abuse.
Can you sell a house if you can pay all the debt?
You can sell the house so long as you can pay all the debt (s) secured against the house. I hope this helps.
Can you sell a home if you own it in Chapter 7?
In most Chapter 7 cases, a mortgage loan is not reaffirmed. I assume that you own the home and there is not a dispute with the bank as to the amount of the payoff. You would have the right to sell the property if you own it. You need to contact an attorney and go over the details of the case.
Can you show your mortgage payment history on credit report?
Not having a record on your credit report may not prevent you from being able to show that you have made your mortgage payments on time - just ask the creditor to provide you with an accounting of your payments to show any potential new lender of your payment history. Report Abuse. Report Abuse.
Do you have to sell a house if you have a lien on it?
On the other hand, you do not HAVE to sell the house.
Can you sell a home after reaffirmation?
Reaffirmation has nothing to do with the ownership of your home, you still own the home. You can definitely sell the home, you just need to use enough of the proceeds to pay off the mortgage after the sale.
Can you sell a house if you still own it?
You certainly can sell the house, because you still own it. Whether or not the mortgage debt was reaffirmed does not in any way effect your title to the house, or your status as its owner.