Retained vs Reaffirmed property
Hello, I had a chapter 7 BK in 2004 and have been working to rebuild my credit since then. My home loan shows as a 0 balance, IIB. When I called them to have the balance updated, since I have never missed a payment, I was told they could not update it. When I asked why the csr told me that when I filled my BK I never reaffirmed my property, I simply retained it by making payments continously. So she told me that because I did not reaffirm that they cant change the ways its recording because if I decide to walk out and they repo the property they cannot come after me for the money.
A side note here.. I have a manufactured house with negative equity, so this is sounding good to me lol, but is this true? And if it is true, how long after I stop making payments until they repo the property in this situation. I looked through my BK packet and found a sheet that said I intended to reaffirm, but there was no reaffirmation agreement in there, I called my old lawyers office and the secratary said she did not see that one was mailed and did not see that one was signed at the meeting of creditors. So I dont have one, my lawyer doesnt have one, the mortgage company dosent have one, hence there isnt one. But is what she told me true about walking out?
She also said when I gasped " I can walk out on 20k negative equity and you cant do anything about it! " that they would report it as a repo on my credit report. If I am not mistaken nothing other that IIB can be added after the BK, can they add it, or no?
Thanks Chris, Michigan :confused: :confused:
Re: Retained vs Reaffirmed property?
It's my understanding that a bankruptcy only protects you against collections actions (suits, garnishments, judgments, etc.)....it does not entitle you to a clean credit record. If the loan is secured only with the mobile home, then yes....you can walk away, they can repossess the home, but they cannot sue you for the deficiency after sale. They can, I believe, update the credit report to show that you no longer possess the collateral, but the record should show a 0 balance owed. If the loan is also secured by the land on which the home sits, they will need to foreclose.
Since your Ch 7 has, I assume, already discharged, you should consult a local bankruptcy attorney (perhaps the one that filed your petition) before doing ANYTHING. I'm not familiar with the new laws....you need to be sure that this new deficiency debt will not be regarded as a post-discharge debt since your original schedule must have indicated that you intended to reaffirm the debt, keep the home and continue paying this particular creditor.
Don't just take the word of the loan officer, or me, that you can walk away scott free......talk to your lawyer.
Re: Retained vs Reaffirmed property?
My discharge was in 04 and the home is not on real property, it is in a park. Just trying to gauge what my options are, I called a attorney, he would be glad to speak to me for 250 a hour
Re: Retained vs Reaffirmed property?
did you call the attorney who filed your ch 7 in 04?