If reaffirming didn't properly get done on a mortgage on a Ch. 7 & still making payments. What does that mean & how do I get out

Good for them, reaffirmation on a mortgage has serious consequences, especially if they sign one and then default. Speak with the attorney who filed the bankruptcy. They will own the home upon the completion of the mortgage payments, just as if they did not file. If their credit reports don't show the mortgage being paid, they need to contact the credit reporting agencies one by one and demand that the error be corrected. The Federal Trade Commission web site (below) has excellent information on how to correct errors on your credit report. If they leave and quit making payments, it won't hurt anything since they are eligible for that debt to be discharged.

Most mortgage companies never bother to offer a reaffirmation and most bankruptcy judges will not sign off on them either. A reaffirmation is simply a personal guarantee of a debt that is already secured by the property. While the creditor can foreclose if payments aren't made, the creditor cannot foreclose if payments are made. And when the debt is fully paid, the creditor must release its security interest and the title will show the property is clear. After any bankruptcy, absent a reaffirmation, no creditor can report information, good or bad, to the credit bureaus. Of course, the existing bad information won't be changed. Hope this perspective helps!

The answers given to you were correct, but did not cover what happens in your parents quit paying and the mortgage is foreclosed. The fact that your parents did not make the payments cannot be shown since they are not obligated to pay. However, if the mortgage company forecloses, then the fact that the foreclosure occurred will show on their credit report. A foreclosure on a person's credit report will prevent the person from being approved for a traditional long term mortgage, such as an FHA mortgage for 3 years.

Check with your attorney. Not reaffirming is almost always the way to go, not an error on the part of your attorney. And I've never seen a loan company claim you could not pay your contract as agreed if you chose - check with your attorney on this but as long as you continue to make payments on time, what you got out of the chapter 7 is that if the home is ever foreclosed on, they can't come after you for any undervaluation that was wiped out at the time of the chapter 7. Never heard of a bank being able to refuse your contracted payment amount, but perhaps in your state that's legal?