Mortgage company says debt was not discharged...

[ecsclb1724]

background info:

DH and I filed pro se and thought we were going to reaffirm our mortgage and filed all the paperwork thinking our past due balance would be included in the reaffirmation. Well after our mortgage company started hounding us for the past due balances we looked into it more and it looks like our reaffirmation was NOT approved by the courts.

I have been talking to the mortgage company because we'd like to keep our house and told her the reaffirmation had not been approved, and she sent an e-mail back saying "YES it had been approved"...

So how do I go about finding whether or not we've actually reaffirmed the mortgage?

We never had a reaffirmation hearing, and this is what showed up on pacer, which I was told meant that the reaffirmation was not approved by the courts.

REVIEW of Reaffirmation Agreement - Finding: The reaffirmation agreement has not been reviewed because the agreement is for a consumer debt secured by a mortgage, deed of trust, security deed or other lien on real property. (RE: Reaffirmation Agreement (pro se debtor) 13 ). (ERC) (Entered: 02/03/2010)

This is what the mortgage company said:

Our attorney reviewed the Reaffirmation Agreement and it is indeed valid. The court entry the member referenced simply says the agreement was "not reviewed" and that's because it was secured by real estate. It was not disapproved by the court. If that had happened, there would be a specific order stating exactly that. Therefore, this debt was not discharged in bankruptcy.

what do you think? I hate this mortgage company with all my heart. We love our house and plan on keeping it for a long time but I swear the people in the mortgage department sleep with the devil.

EDIT: this loan is through a credit union, from what I'm reading credit union reaffirmations may have different stipulations to where hearings are not mandatory?

[keepinitreal]

Ask them to show you the re-affirmation form that you and your husband signed for the mortgage. If you signed it, then you may be stuck.

If there's no record of you signing a re-affirmation agreement, you could look for an attorney to notify them to no longer try to collect a debt that was released in your bankruptcy.

[ecsclb1724]

everything was signed and filed... the question is whether or not the court approved the reaffirmation

[jadams]

I think the credit union is correct. The language you quoted merely points out that a hearing wasn't necessary to approve the reaffirmation agreement. In many cases the pro se debtor cannot conduct a reaffirmation without court approval.

This is from 11 USC 524(j) and is reference to mandatory language that must be included on the reaffirmation agreement that you signed.

"7. If you were not represented by an attorney during the negotiation of your reaffirmation agreement, it will not be effective unless the court approves it. The court will notify you of the hearing on your reaffirmation agreement. You must attend this hearing in bankruptcy court where the judge will review your reaffirmation agreement. The bankruptcy court must approve your reaffirmation agreement as consistent with your best interests, except that no court approval is required if your reaffirmation agreement is for a consumer debt secured by a mortgage, deed of trust, security deed, or other lien on your real property, like your home."

[Brazzy]

Not all reafs need a court approval. In most districts if a reaf causes an undue hardship or is not signed by debtor's counsel then a hearing is necessary. However in most cases a hearing is not necessary to approve the reaf. In this case it sounds like in this district they do not review reafs for mortgages. That would mean it is valid since it was filed with the court and was not rescinded nor denied by the court. Check with a local attorney on the district laws regarding a reaf.

[SMinGA]

It seems to be a valid reaffirmation - and your deadline to rescind the reaffirmation was 60 days after your discharge.