Is There a Statute of Limitations to Reaffirm a Mortgage After Bankruptcy
My question involves bankruptcy in the state of: Kentucky my girl friend and myself filed chapter 7 over 7 years ago, we have not reaffirmed the home, we have been making payments since the discharge, through the advice of our attorney (if you want to live there just make the payment) as the loan has been sold two times since the filing. It started with Countrywide they sold to Green Tree who sold to Ditech we have not made a verbal or written agreement with any of these companies. We have paid over 100k since the discharge and over 250k before the filing our stupidity of course since the home is only worth a 130k. The title is still in both our names is there a statute of limitation for the banks to reaffirm a loan or am I screwed? as I recently tried to get a loan and this became a problem.
Re: Is There a Statute of Limitations to Reaffirm a Mortgage After Bankrutpcy
It's not up to the bank to reaffirm the mortgage -- it's up to you. If you do not reaffirm, a lender will typically accept your payments on your mortgage and, if you pay off the property, release its lien. If you default, they can be expected to take action to recover the property.
You need to explain what you mean by "I recently tried to get a loan and this became a problem". If you mean, no lender is going to issue you a loan using the property as security unless you refinance and clear the bankruptcy issues from the property, that's entirely predictable.