Home » Articles » Finance / Wealth

Should a Chapter 7 Debtor refinance their mortgage?

Should a Chapter 7 Debtor refinance their mortgage?
"You may be required to reaffirm your mortgage following a Chapter 7 bankruptcy filing. Who asked the question? Obviously, the mortgage firm. Most mortgaged properties in Michigan are underwater, or worth less than what is owed on them.So, you file for Chapter 7 bankruptcy with a home worth $100,000 and owing $120,000. This is the time to walk away from the home, as you will be discharged from any obligation to pay the mortgage note in Chapter 7 bankruptcy. But, like most of my clients, you want to retain your home (unless the mortgage company sues you in bankruptcy court by filing an adversary proceeding and proving you committed fraud in obtaining the mortgage). Obviously, you must be capable of making the mortgage payment following Chapter 7 bankruptcy. And continue paying taxes and maintaining insurance, just as you did before declaring bankruptcy. Are you required to execute a reaffirmation agreement that makes you personally liable for the mortgage note as if you had never declared bankruptcy? No.I have never witnessed a mortgage company in Michigan foreclose on a homeowner who was current on taxes and payments and whose property was insured solely for failing to sign a reaffirmation. It borders on malpractice for an attorney to approve a client's reaffirmation of a mortgage that exceeds the home's value. I look at upside, downside. I see no consequence to declining to reaffirm. Now, some mortgage companies claim they will not report your on-time payments to the credit reporting agencies.So? You have the right to have your credit report contain accurate information. You can add that yourself at least once a year, without them. They must provide you with at least annual statements. The drawback? You sign, something goes awry, you are unable to make the payments, they foreclose for the home's value of $100,000 and sue you for the $20,000 difference.
" - https://www.affordablecebu.com/
 

Please support us in writing articles like this by sharing this post

Share this post to your Facebook, Twitter, Blog, or any social media site. In this way, we will be motivated to write articles you like.

--- NOTICE ---
If you want to use this article or any of the content of this website, please credit our website (www.affordablecebu.com) and mention the source link (URL) of the content, images, videos or other media of our website.

"Should a Chapter 7 Debtor refinance their mortgage?" was written by Mary under the Finance / Wealth category. It has been read 427 times and generated 1 comments. The article was created on and updated on 03 June 2023.
Total comments : 1
Mzxrou [Entry]

buy generic atorvastatin over the counter <a href="https://lipiws.top/">buy lipitor 40mg for sale</a> buy lipitor pills for sale