Home arrow Mortgage Forums arrow Forums: Learn from other's experiences arrow

Debt Reaffirmation after bankruptcy - What does it mean?

Author Message
Icon Mini Profile domsmom44





Joined: 24 Oct 2007

Posts: 10

11.29 Dollars($)
Post Posted: Thu May 08, 2008 6:08 am    Post subject: Debt Reaffirmation after bankruptcy - What does it mean?
Like 0
Dislike 0

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?
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor

best lender badge

Joined: 09 Nov 2007

Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
Post Posted: Thu May 08, 2008 6:17 am    Post subject: re: Debt Reaffirmation
Like 0
Dislike 0

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

Debt reaffirmation 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 mainly signed when you're in Chapter 7.

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.

_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
Icon Mini Profile Niicss
Niicss




Joined: 03 Oct 2005

Posts: 4770
Location: New Jersey
499.28 Dollars($)
Post Posted: Thu May 08, 2008 6:29 am    Post subject: Debt reaffirmation
Like 0
Dislike 0

Hello domsmom.

Agree with gmakerley. Debt reaffirmation 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.

However, debt reaffirmation cannot take place in case of Chapter 13 bankruptcy. In this chapter, the lender would give you a payment plan to pay off the dues.

Let me know if you have any further questions.

_________________
Good is the Enemy of Great.
Icon Mini Profile domsmom44





Joined: 24 Oct 2007

Posts: 10

11.29 Dollars($)
Post Posted: Thu May 08, 2008 6:39 am    Post subject: Debt Reaffirmation
Like 0
Dislike 0

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?
Icon Mini Profile cliff3
cliff3
Community Expert
Community Expert



Joined: 05 May 2008

Posts: 328
Location: Houston
75.44 Dollars($)
Post Posted: Thu May 08, 2008 8:55 am    Post subject: Re: debt reaffirmation after bankruptcy
Like 0
Dislike 0

Debt reaffirmation 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 Pape
Market Analyst
www.home-buddies.com
Icon Mini Profile cliff3
cliff3
Community Expert
Community Expert



Joined: 05 May 2008

Posts: 328
Location: Houston
75.44 Dollars($)
Post Posted: Thu May 08, 2008 8:58 am    Post subject: Debt reaffirmation
Like 0
Dislike 0

Here is a helpful article that explains debt reaffirmation.

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

[Link deactivated as per forum rules. Thanks.]

_________________
Cliff Pape
Market Analyst
www.home-buddies.com
Icon Mini Profile domsmom44





Joined: 24 Oct 2007

Posts: 10

11.29 Dollars($)
Post Posted: Thu May 08, 2008 9:02 am    Post subject: Debt reaffirmation
Like 0
Dislike 0

Cliff,

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

State Farm Bank.
Icon Mini Profile cliff3
cliff3
Community Expert
Community Expert



Joined: 05 May 2008

Posts: 328
Location: Houston
75.44 Dollars($)
Post Posted: Thu May 08, 2008 9:18 am    Post subject:
Like 0
Dislike 0

It would have been in your original bankruptcy paperwork. Can you get in touch with the attorney who originally filed your bankruptcy?
_________________
Cliff Pape
Market Analyst
www.home-buddies.com
Icon Mini Profile domsmom44





Joined: 24 Oct 2007

Posts: 10

11.29 Dollars($)
Post Posted: Thu May 08, 2008 10:03 am    Post subject: re: debt reaffirmation
Like 0
Dislike 0

I work for attorneys. I can get online on the BK website and check my papers.
Icon Mini Profile domsmom44





Joined: 24 Oct 2007

Posts: 10

11.29 Dollars($)
Post Posted: Thu May 08, 2008 10:13 am    Post subject: Debt Reaffirmation
Like 0
Dislike 0

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?
Icon Mini Profile cliff3
cliff3
Community Expert
Community Expert



Joined: 05 May 2008

Posts: 328
Location: Houston
75.44 Dollars($)
Post Posted: Thu May 08, 2008 12:18 pm    Post subject: re: debt reaffirmation
Like 0
Dislike 0

Debt reaffirmation 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?

_________________
Cliff Pape
Market Analyst
www.home-buddies.com
domsmom

Guest







Post Posted: Thu May 08, 2008 1:25 pm    Post subject: Re: debt reaffirmation
Like 0
Dislike 0

6 months on second I'm arrears.
Icon Mini Profile cliff3
cliff3
Community Expert
Community Expert



Joined: 05 May 2008

Posts: 328
Location: Houston
75.44 Dollars($)
Post Posted: Thu May 08, 2008 1:30 pm    Post subject:
Like 0
Dislike 0

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.
_________________
Cliff Pape
Market Analyst
www.home-buddies.com
Icon Mini Profile Jessica
Jessica
Community Mentor
Community Mentor



Joined: 08 Jun 2004

Posts: 808
Location: OHIO
435.63 Dollars($)
Post Posted: Fri May 09, 2008 4:26 am    Post subject: debt reaffirmation: workout with 2nd lender
Like 0
Dislike 0

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 mortgage 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

_________________
http://jessica.mortgagefit.com/
sean

Guest







Post Posted: Mon Jan 05, 2009 1:01 pm    Post subject: debt reaffirmation with indy mac
Like 0
Dislike 0

i filled bankrupt in may of 08. called indy mac 2 months ago and found out that my loan was not reaffirmed in their system. I told them I reaffirmed my loan during my bankruptcy and I have copy of agreement. they said to talk to my attorney. so I did they said they mailed it to indy mac, and they should have reaffirmed. I called indy mac back told them what the attorney said. they said that the judge needed to aprove it . Itold them that because I was represented by an attorney that was not the case. so they said to fax over my copy of the agreement mad in may and they will review it.
I need debt reaffirmation because im going to have to be late on house payment due to the fact indy mac paid my property taxes(even though i had a agreement with the county to make payments) and I cant afford the payment,and dont want to lose my home.
indy macs loss mitigation center wont modifie my loan without reaffirmation.Im not late yet but will have to be.
if they dont reaffirm my loan what can i do to keep my house.
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
1, 2, 3  Next  
Page 1 of 3

 
Highlights
Bookmark this page
Share |

Helpful References
Mortgage Guide
Mortgage Terms
Mortgage News
Book Center
Shop and Compare lenders
30 Yr. Fixed Vs. 5/1 ARM


Calculators     [View all]
Are you eligible for loan?
How much you can afford?
Calculate monthly payment
Calculate APR


Financial Tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


Our Community
MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards
Five simple ways to earn money with the Mortgage Community.

MortgageFit on Twitter

Followers (265)








Community Chat

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0
Page loaded in 21.332 seconds.