What does Reaffirmation of Debt mean?

domsmom44 · Joined: 24 Oct 2007 Posts: 10 4.50 Dollars($)

We filed Ch. 13 BK and it was discharged 8/07. I am delinquent on our second mortgage. I just pulled our credit report and it states under the second mortgage creditor: Reaffirmation of debt. What does this mean? Are they foreclosing?

gmakerley · Posted: Thu May 08, 2008 6:17 am Post subject:

never fear...i remember from your previous posts, etc. that you had worked out a modification on your second mortgage.

reaffirming means that you agreed in your bankruptcy to continue to pay that debt. as long as you can catch those payments up again and not go into default, they will not begin a foreclosure action.

it's important, however, that you make the overdue payments as soon as you can, and work to stay current. i doubt they will have much sympathy in this situation, as they've worked with you through the bankruptcy, etc.

i hope you'll be able to get caught up and stay that way soon.

Niicss · Joined: 03 Oct 2005 Posts: 807 118.37 Dollars($)

Hello domsmom.

Agree with gmakerley. Reaffirm agreement means you have agreed to pay off the amount of debt that you owe to the lender. In return the lender or the creditor promises that it will not be repossessed as long as you continue to pay the debt.

Let me know if you have any further questions.

domsmom44 · Joined: 24 Oct 2007 Posts: 10 4.50 Dollars($)

George,
I did not have a loan modification with my second mortgage. My first I do, not second. I am arrears with second, saw on credit report "Reaffirmation of debt". Have not received anything from 2nd mortgage company regarding this reaffirmation of debt?

cliff · Posted: Thu May 08, 2008 8:55 am Post subject:

Reaffirmation of debt means that at the end of your bankrupcy your attorney had you sign a document stating that you would agree to pay your second lender. He would of had to do this in order for you to keep your house.

I would recommend contacting your 2nd lender and speaking with the loss mitigation department. They should be willing to work with.

Who is your second lender?

cliff · Posted: Thu May 08, 2008 8:58 am Post subject:

Here is a helpful article that explains Reaffirmation Of A Debt.

"http://mauilaw.com/article5.htm"

[Link deactivated as per forum rules. Thanks.]

domsmom44 · Joined: 24 Oct 2007 Posts: 10 4.50 Dollars($)

Cliff,

I did not sign any papers when our Ch. 13 was paid off and discharged last year.

State Farm Bank.

cliff · Posted: Thu May 08, 2008 9:18 am Post subject:

It would have been in your original bankruptcy paperwork. Can you get in touch with the attorney who originally filed your bankruptcy?

domsmom44 · Joined: 24 Oct 2007 Posts: 10 4.50 Dollars($)

I work for attorneys. I can get online on the BK website and check my papers.

domsmom44 · Joined: 24 Oct 2007 Posts: 10 4.50 Dollars($)

But what does it mean on my credit report when it says Reaffirmation of Debt? Are they foreclosing? Are they sending me something to sign? What does it mean?

cliff · Posted: Thu May 08, 2008 12:18 pm Post subject:

It is just showing that you agreed to pay them. Since, it is on your credit it is counting as money that you owe and will have to pay. I hope this answers your quesiton?

I'm a little concerned about your second mortgage. How many payments are you behind with your second mortgage?

Guest 0.10 Dollars($)

6 months on second I'm arrears.

cliff · Posted: Thu May 08, 2008 1:30 pm Post subject:

Have you attempted to contact them to make some kind of arrangement? The last thing you want them to do is send you a notice of default.

Jessica

Well I agree with cliff and george. The second lender if contacted may have options for you so that you can pay off the loan easily. The reaffirmation agreement reflected on your credit report implies that you will pay off the remaining balance on the second loan even though you have been discharged from bankruptcy.

I shall suggest that you have a talk with the second lender since they didn't make you sign any written agreement and get confirmed as to when he wants you to start paying.

Regards,

Jessica

All times are GMT - 7 Hours

Page 1 of 1