Reaffirmation of mortgage pointless in states that do not allow deficiency judgments?

[brokeballer]

I stated I intended to reaffirm my mortgage, but changed my mind. BoA sent me a letter acknowledging that I filed, and made no mention of a reaffirmation. The bank just said to keep paying or they MAY enforce their right to foreclose.

Has anyone in a state that doesn't allow deficiency judgments still had to reaffirm?

[justbroke]

In those States, the Judge won't even sign them, so they are moot. The Judges are getting very smart about not allowing a debtor to sign a reaffirmation agreement in a State where the underlying State non-bankruptcy law prohibits the lender from taking any action or enforcing any right to cure on a breach caused solely by the Bankruptcy itself.

I don't know why deficiency would have anything to do with it. The Bank foreclosing upon you and causing you to lose your home, is the real penalty in this case. It's not that you won't have a deficiency (like in California on purchase money loans).. it's the actual foreclosure (getting kicked out of your home). Otherwise, a person should just surrender.

In my opinion.

I read one transcript from a hearing in which the Judge aptly stated that allowing the reaffirmation was "not in the best interest of the debtor"... and denied the request.

[lifelesson]

Which states have that underlying law? Thanks

[mom2three09]

We're also with BofA... from everything I've read on here BofA does NOT reaffirm. We're 3 wks post 341 and have not received anything from them (other then some sort of statement reminding us that our payment is going up starting Sept due to escrow changes).

[LuciluS]

Which states have that underlying law? Thanks

Hey Justbroke or anyone who maybe able to answer the above, sure would appreciate the answer.

Luci

[justbroke]

Hey Justbroke or anyone who maybe able to answer the above, sure would appreciate the answer.

Luci

Yes, we should get a consolidated list. These I know of from cases I've looked through... Many are not based on underlying law, but on interpretation of the bankruptcy code post-BAPCPA.

States that allow ride-thrus (and a case citation):

Missouri

• In re Riggs, 2006 WL 2990218 (Bankr. W.D. Mo. Oct. 12, 2006)

Virginia

• In re Husain, 364 BR 211 (B.E.D Va 2007)

Connecticut

• In Re Caraballo Case No. 07-32469 (D. Conn. 2008)

The real core cases which are used in most of these decisions are Capital Communications Federal Credit Union v. Boodrow (In re Boodrow), 126 F.3d 43 (2d Cir. 1997), cert. denied, 522 U.S. 1117 (1998) and BankBoston, N.A. v. SokolowskiStates that do not allow ride-thrus:**

Florida
California (9th)
Washington (9th)
Oregon (9th)
Hawaii (9th)
Alaska (9th)
Nevada (9th)
Montana (9th)
Idaho (9th)
Arizona (9th)
Guam (9th)

** Note: the 9th Circuit Appellate decision may have been overruled at the District Court level, but I don't know.

Also, we would need to validate this list as well. This is not from personal experience.

[joh]

Where does Maryland fit in ?

[whipster1]

Texas is a non-recourse state also. Judges generally won't allow mortgage reaffs unless the terms are improved such as interest rate.

[chavez30]

Is Colorado on this list as well?

[markdel16]

I'm in PA and I asked my lawyer whether I should re-affirm or do a ride-through, and he said the judge won't allow a re-affirmation unless the lender makes some concessions, which is never going to happen.

[Chowder]

States that do not allow ride-thrus:**

Florida
California (9th)
Washington (9th)
Oregon (9th)
Hawaii (9th)
Alaska (9th)
Nevada (9th)
Montana (9th)
Idaho (9th)
Arizona (9th)
Guam (9th)

** Note: the 9th Circuit Appellate decision may have been overruled at the District Court level, but I don't know.

My experience.
No car ride-throughs in Washington state.
Yes on home mortgages though.

[joh]

Any other states don't allow ride thoughs?