Hi - new member - mortgage reaffirmation denied today - questions

[Faith527]

Hi, been lurking on this site for almost a year. My husband suffered a serious health problems and we had to file Chapter 7 BK. We were discharged in December 2019. Prior to the discharge, our mortgage provider had advised that in order to get monthly statements (since they pay our real estate taxes and homeowners via the escrow account)......they advised that we should reaffirm the mortgage. Since we have equity in the home and have been on time with all payments, we went ahead and signed the reaffirmation agreement which triggered a hearing. FYI: We did have a lawyer during our Chapter 7 but the lawyer would not sign off on the reaffirmation agreement because it goes against the "grain" of a fresh start. After reading JustBroke and Des' opinions on reaffirmation agreements, I came to believe that perhaps we should have stuck to the "stay and pay" option. Our Chapter 7 lawyer was of the view that the BK judge would approve the reaffirmation agreement and he did help us fill out the form but wouldn't sign off on form. Fast forward to today's hearing. The judge called us up and stated "there is no reason to reaffirm a mortgage debt since you are up to date on payments. He advised us to keep paying the mortgage and he went on to say "if you have any issues with the lender come back and I will hold them in contempt". He ended with "I'll issue an order denying the mortgage reaffirmation pursuant to the protections of the 2005 Bankruptcy Act and to have a good day". FYI: This Judge is known for his general dislike for mortgage reaffirmation agreements. Phew. This was the outcome I was hoping for after reading these forums for days on end. That said, I was originally told by our mortgage provider that we won't get monthly statements, online access, etc. What happens next I wonder? Any input is greatly appreciated.
Kind regards,

[Faith527]

PS: I wanted to add - they can't foreclose on us, etc. We plan to keep the mortgage current. Thanks in advance.

[justbroke]

I am so glad, and I'm sure despritfreya is as well, that your judge was spot on. There is 100% no reason to reaffirm a mortgage at all. Especially if you're just trying to get statements. Just about every single mortgage creditor will start sending statements if you and/or your attorney send a letter that you will not treat them as attempts to collect debt. My statements started automatically after discharge with the note "this is not an attempt to collect a debt" on them.

I wish you the best! I love your judge and I'm glad your attorney wouldn't sign the reaffirmation agreement.

[Faith527]

I am so glad, and I'm sure despritfreya is as well, that your judge was spot on. There is 100% no reason to reaffirm a mortgage at all. Especially if you're just trying to get statements. Just about every single mortgage creditor will start sending statements if you and/or your attorney send a letter that you will not treat them as attempts to collect debt. My statements started automatically after discharge with the note "this is not an attempt to collect a debt" on them.

I wish you the best! I love your judge and I'm glad your attorney wouldn't sign the reaffirmation agreement.

THANK YOU Justbroke. I read, re-read, all of the reaffirmations threads I could find! Thank you for your kind reply. After exemptions and balance owed to the bank, there is about $25K in equity. I cannot state enough how serious this was for me - I was literally sick over signing that agreement. Then I started thinking "what is something happens to DH"..... "what is something happens to me"......why am I taking on $350K in debt, my nerves were shot. All of the threads on this site about mortgage reaffirmations are spot on. Yes, this judge was fantastic. He didn't say "you can't afford the mortgage", he went straight to the fresh start 2005 Bankruptcy Act. (I did research the judge so I knew going in that he is not a fan of "infecting bankruptcies with mortgage reaffirmations"). I can never thank all who participate here enough for the knowledge I gained. There were a number of people reaffirming cars (approved) and I think I get it now - i.e. why reaffirming cars works for some. That said, it wouldn't be my first choice but the house was different in that the bank was seriously! pressuring us to reaffirm mortgage. \Our old cars are 2006 and 2012 lol. Des' advice has been spot on too and I have found his advice on a couple of forums - thank you to Des too and to ALL OTHERE MEMBERS on various threads that I have read about mortgage reaffirmations. The equity is not much - what was I thinking - thankfully you all and the judge squashed that dumb idea. On a separate note, I apologize for not first introducing myself. Can you all share when will this sick feelings of stress, etc. pass? I have another question but I will post is separately - it may help someone else out there. Thanks again and thanks to all. Kind regards,

[Faith527]

PS: The judge issued an order to protect us as well - nice Judge.

[justbroke]

Your judge is awesome!

[despritfreya]

Faith527 You are quite welcome. Glad I could assist in some way.

Des.