I filed a chapter 7 bankrupcy in Oregon and received my discharge back in
February '03.
I was able to keep the house, since there was little equity.
Following the advice of my lawyer, I did not reaffirm the debt on the house.
I was unemployed at the time of filing and the lawyer said the if I did not
reafirm the debt (mortgage), that if I couldn't find a job to keep paying
the mortgage, I could "walk away" from the house and I would be protected by
the bankruptcy from any attempt by the mortgage company to collect any
money.

My question is: What advantage, if any, is there for reaffirming a
mortgage?

Thank you.

J

I am not a lawyer but I was in the same situation. My discharge ch. 7
occurred in July of this year. I have little equity in my house, the
loan payments are always on time, the mortgage co. offered to reaffirm
and at the advice of my lawyer he said not to do it. How he explained it
to me if I could recall, you are basically resigning the mortgage
contract with them. I think he said if I do this then I am basically
responsible for the loan and property if I default. If I don't reaffirm
I can just walk away from the property and the loan without any issues.

My mortgage co. was just taken over by a larger lender and on the very
first statement that I received from them it stated, if I fail to meet
the payment requirements of this loan they have the right to take over
the property at their discretion. So basically if I miss a payment they
can take over the house. So in my opinion if I decide I need/want to
move out or stop paying they will be responsible for the rest. Again my
plans are not to move or miss a payment, I never have before but my
lawyer stated to me that in some cases reaffirming is a good idea but
most often it is not. Seek counsel to clearly give you an opinion.

Rip

In those states where it is not required, virtually none.

--
Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@erols.com *
* http://www.erols.com/lawyer *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only.
It isn't meant to be legal advice and you shouldn't treat it as
such. If you want legal advice, speak with a local lawyer
familiar with your state's laws who can review *all* of the facts
and the law applicable to your situation.
************************************************** ***************


"J" <jdlc@mail.com> wrote in message
news:PGednVn1uojv3OiiU-KYvA@comcast.com... I filed a chapter 7 bankrupcy in Oregon and received my
discharge back in February '03. I was able to keep the house, since there was little equity. Following the advice of my lawyer, I did not reaffirm the debt
on the house. I was unemployed at the time of filing and the lawyer said the
if I did not reafirm the debt (mortgage), that if I couldn't find a job to
keep paying the mortgage, I could "walk away" from the house and I would be
protected by the bankruptcy from any attempt by the mortgage company to
collect any money. My question is: What advantage, if any, is there for
reaffirming a mortgage? Thank you. J

Your mortgage company cannot simply "take over" the house if you
miss a payment. It must first go through your state's
requirements and formally foreclose on it.

--
Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@erols.com *
* http://www.erols.com/lawyer *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only.
It isn't meant to be legal advice and you shouldn't treat it as
such. If you want legal advice, speak with a local lawyer
familiar with your state's laws who can review *all* of the facts
and the law applicable to your situation.
************************************************** ***************


"Ripples" <Ripples37@webtv.net> wrote in message
news:23209-3F755F32-9@storefull-2333.public.lawson.webtv.net... I am not a lawyer but I was in the same situation. My discharge
ch. 7 occurred in July of this year. I have little equity in my
house, the loan payments are always on time, the mortgage co. offered to
reaffirm and at the advice of my lawyer he said not to do it. How he
explained it to me if I could recall, you are basically resigning the
mortgage contract with them. I think he said if I do this then I am
basically responsible for the loan and property if I default. If I don't
reaffirm I can just walk away from the property and the loan without any
issues. My mortgage co. was just taken over by a larger lender and on
the very first statement that I received from them it stated, if I fail
to meet the payment requirements of this loan they have the right to
take over the property at their discretion. So basically if I miss a
payment they can take over the house. So in my opinion if I decide I
need/want to move out or stop paying they will be responsible for the rest.
Again my plans are not to move or miss a payment, I never have before
but my lawyer stated to me that in some cases reaffirming is a good
idea but most often it is not. Seek counsel to clearly give you an
opinion. Rip

Thank you Rip and Brett.

JD


"Brett Weiss" <lawyer@erols.com> wrote in message
news:OoadnaWFIvILEuqiXTWJkA@comcast.com... In those states where it is not required, virtually none. -- Brett ************************************************** *************** * Personal Injury/Malpractice Bankruptcy * * * * BRETT WEISS, P.C. * * Attorneys at Law * * Maryland, D.C. and Federal Bars * * lawyer@erols.com * * http://www.erols.com/lawyer * * * * Small Business Estates & Estate Planning * ************************************************** *************** The Small Print: This response is for discussion purposes only. It isn't meant to be legal advice and you shouldn't treat it as such. If you want legal advice, speak with a local lawyer familiar with your state's laws who can review *all* of the facts and the law applicable to your situation. ************************************************** *************** "J" <jdlc@mail.com> wrote in message news:PGednVn1uojv3OiiU-KYvA@comcast.com... I filed a chapter 7 bankrupcy in Oregon and received my discharge back in February '03. I was able to keep the house, since there was little equity. Following the advice of my lawyer, I did not reaffirm the debt on the house. I was unemployed at the time of filing and the lawyer said the if I did not reafirm the debt (mortgage), that if I couldn't find a job to keep paying the mortgage, I could "walk away" from the house and I would be protected by the bankruptcy from any attempt by the mortgage company to collect any money. My question is: What advantage, if any, is there for reaffirming a mortgage? Thank you. J