Refinance Question

[2manybills]

Hi Everyone - I have not been around the boards for a while, just a crazy time changing jobs, etc. I'm sure some of you guys remember me. We are almost 4-1/2 years from discharge and I am attempting to refinance my property. As many of you recall, I was successfully able to settle my equity line for 10 cents on the dollar, and so we are now in a position of having a nice chunk of equity in our house and no debt (yeah!).


I am attempting to refinance and get a little lower interest rate with the credit union. The loan officer came back to me today and said that they require that we would have reaffirmed our first mortgage for them to do a loan with us. I checked with my BK lawyer, and he said most Judges in the Central District of California would not even approve a reaffirmation agreement on a mortgage. I have had to send a letter into the credit union of explanation. I was just wondering if any of you have run into this?

[LadyInTheRed]

I think I remember at least one person being told that. It doesn't make any sense that they would care. Try another lender if this one doesn't work out.

If your first mortgage was a purchase money loan or the refinance of a purchase money loan, reaffirmation would be irrelevant in California anyway because purchase money loans on a personal residence are non recourse in California. Even without a BK discharge, you would have no personal liability for a deficiency.

[help1234]

Wondering how this worked out for you. We are trying to refi also and being told it requires that we have a reaffirmation on the original loan. Just doesn't make sense to me.