Is it necessary to reaffirm your mortgage after bankruptcy?

Is it necessary to reaffirm your mortgage after bankruptcy?

Reaffirming your mortgage is not necessary in order to keep your home. In most cases it is not advisable that you reaffirm your mortgage. Signing a reaffirmation agreement for your mortgage, makes you personally liable for the debt, after bankruptcy.

What happens to your mortgage when you file bankruptcy?

After filing for bankruptcy, you may have noticed that your monthly mortgage payments are not being listed on your credit report. Instead you will see the account listed as “Included in Bankruptcy”, with no further notations on the monthly payments being made.

Can you sell a house if your loan is not reaffirmed?

Having not reaffirmed your mortgage will not affect your ability to sell your property.

Can You Lose Your Home if you file bankruptcy?

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. Your bankruptcy discharge extinguishes the promissory note you signed at the time you took out your mortgage.

What happens to my house if I file bankruptcy?

If your home is destroyed or the lender forecloses due to non-payment or other breaches of contract, you promise to pay the debt owed after insurance or a foreclosure sale. Bankruptcy laws require debtors to surrender, redeem, or reaffirm secured debts, including mortgages and car loans.

What happens to your house when you file Ch.7?

You have all benefits of ownership after filing Ch. 7 bankruptcy regarding your home, even though you didn’t formally reaffirm that debt with the lender. You simply had no personal liability after your Ch. 7 discharge, that is, had you defaulted on the loan the lender could not have sued you for a deficiency.

Can you sell your house if it’s not reaffirmed?

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.

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