making no mortgage payments and filing bk?

[murphsmom]

Our bank actually suggested that we modify first, and then file BK7, which we did. Debt was discharged, and the amazing thing is, the bank NEVER sent reaffirmation paperwork, and we haven't reaffirmed the mortgage, which is great, because my husband lost his job again, and we are now walking away. Missed 4 months of payments, and foreclosure process is imminent. Very happy we didn't reaffirm. Read your mod paperwork VERY carefully, and make sure that there isn't a clause in there about "implied reaffirmation".

We've missed 4 payments, and now the mortgage is "no longer favorable", but they also haven't tried to collect on our pre-mod amount, the collection and past due amount is still based on the modified payment, which actually goes against our agreement.

[LadyInTheRed]

Read your mod paperwork VERY carefully, and make sure that there isn't a clause in there about "implied reaffirmation".

Not sure what you mean by "implied reaffirmation". The only way to reaffirm a debt is by executing a reaffirmation agreement that is filed with the court before discharge. A modification agreement, whether signed before or after the debt is discharged in bankruptcy, cannot reaffirm the discharged debt. Any language in a modification agreement that indicates the loan is reaffirmed is not enforceable unless the reaffirmation is filed with the court and other requirements under the bankruptcy code are satisfied. Once the mortgage is discharged, the only way to re-obligate yourself to pay for the home is if you refinance and take on an entirely new loan.

[murphsmom]

OK thanks for the clarification. Our attorney kept stressing to us to make sure that there wasn't any "implied reaffirmation" or any clause in our modification agreement stating that it wouldn't be dischargeable in the case of future bankruptcy?