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I forgot to reaffirm my first mortgage in my bankruptcy a year ago and just realized it was not reaffirmed... now what?
Anonymous2 views5 answers
I have still been making payments but, was hoping to get some type of modification. Lender says it was discharged so they can't do anything. What are my options here? Can you re-open the bankruptcy to re-affirm? I have a seconf Mortgage that WAS reaffirmed so, I can't walk away? Please help!
If your lender is participating in the government's HAMP mortgage modification program, the regulations say that they cannot refuse a HAMP modification due to a bankruptcy. To find out if they are a participant, go to the making homes affordable web site:
www.makinghomeaffordable.gov
. If they are listed as participant, contact your lender again and insist on being allowed to make a HAMP application. Be warned though, making an application does not mean you will actually obtain a modification. It is a long and frustrating process and many people are denied. You might also want to contact the Illinois Attorney General's consumer division about your situation. They have a division that is addressing problems in obtaining loan modifications.
Sounds like you have become quite sucessful at shooting yourself in the foot!
There was no need to reaffirm either mortgage & it is unfortunate that you chose to do so with the 2nd mortgage. The reason there was no need to reaffirm is because mortgage foreclosure is regulated by state law & the mortgage can't be foreclosed without following that state law.
Very few people that apply for a loan modification recieve one. I would suggest that you watch my videos about loan modification to get a better understanding of what it does and more importantly, what loan modification does not do. I have posted a link to part 1 of this 4 part series below, and you can find the other 3 parts under my legal guides by clicking on my photo.
Hope this perspective helps!
That is an unfortunate situation. I would try to obtain a mortgage through another lender and use the proceeds to pay off your current first mortgage rather than trying to modify your loan through your existing mortgage creditor. Interest rates are low so you may find that you are able to lower your interest rate as well as curing mortgage arrears. Whether or not you are able to do this will depend upon the laws governing mortgages in your state.
You cannot reopen to effirm the debt in the vast majority of jurisdictions. most banks will not refinancne or modify the debt because it is considered aa violation of the discharge injunction under secction 524.
You will have to refinance with another bank.
Your lender is wrong. They can modify your loan; they simply choose not to unless you are personally liable for the debt. I'm sorry to hear that you reaffirmed the second. Perhaps you could talk to the bank who holds your second and attempt to refinance the entire property with them.
In my jurisdiction, I have seen cases reopened and discharges vacated in order to enter into a reaffirmation, but I wouldn't recommend it.
