refiancing home-no reaffirmation should we sign?

[jmartin]

Filed a ch 7 in 2005 and discharged in 1/2006, want to use the equity in our house to do some improvements, mortgage company says no reaffirmation papers where signed so they are not reporting our current pymts to credit bureau or that we even have them as creditors. Other bank needs proof we have a mortgage to approve loan. Mortgage co says we need to go back to bk court and reopen case, is this neccassry?

[Minnymouth]

Okay,

Was your mortgage payment discharged in bankrutpcy? And you are still making payments monthly without reaffirming on the home, correct????

If your home was discharged in bankrtupcy, you did not reaffirm, yet you still make your payments each month, the home is still legally yours and you legally still have a mortgage paper with them..... the original. Even if you didn't sign the reaffirm, if you defaulted on your payments now..... the bank would still have to foreclose on you to take possession of the property.... to resell it.

The only difference in your mortgage now and before is that NOW if you default on the payments you now longer will owe a balance on home...... (it was included in bankruptcy).....

I don't think you have to re-open your case - reaffirm the debt - to be able to refinance your home..... because your original mortgage is still intact and effective as long as you are making your payments on time......

At the present time under your old mortgage you can sell your home, build onto it, etc...... why would you not be able to refinance it?

All you need is copy of your present mortgage, escrow/interest papers from the end of the year, and cancelled checks where you have made payments. That should be sufficient..... Previous history (before bankruptcy) and cancelled checks (since bankrutpcy) should be a sufficient history for the new mortgage company.....

You don't need a report from the credit bureau on your home. All you need is a printout of the payment history on your account where you have made your payments to the mortgage company.... and you can request that.....

Since you included your home in your bankruptcy and the balance was discharged - the mortgage company your home is now thru cannot report anything to the credit bureau - because you no longer owe them anything legally. Your present house payments are being made in "good faith" to keep your home!!

Call your present mortgage company, explain that you are refinancing and need a history of your account. And let them know by supplying this at your request they will be "getting" their money for their mortgage note.... You are not asking them to report to the credit bureau, just give you a record of your payment history to date on your account.

Remember the mortgage company cannot approach you in anyway regarding your account because legally you do not owe them since you did not reaffirm the debt - it was discharged - you are making good faith payments to keep you home....

Yes, you still have a mortgage with this company, they just can't collect if you default on it now.... but they would still have to go to court to foreclose ad get it if you default on the payments....

Hope this helps,

[jmartin]

Thanks, it did help. I called the mtg co and they are sending pymt history to us. And they did confirm that as long as we are current on our pymts they can not foreclose on us.

[macahs]

Filed a ch 7 in 2005 and discharged in 1/2006, want to use the equity in our house to do some improvements, mortgage company says no reaffirmation papers where signed so they are not reporting our current pymts to credit bureau or that we even have them as creditors. Other bank needs proof we have a mortgage to approve loan. Mortgage co says we need to go back to bk court and reopen case, is this neccassry?

I'm assuming they mean file a Chapter 13 when they say 'reopen'?

We had the same thing. We were told even if we're utd on all payments, they have the right not to accept our reaffirmation. The mortgage co. told us we'd either need to refi w/ another co. or file again (meaning Chapt. 13). I'm in the middle of all of this as we speak - we'll see what happens.

Keep us posted on how the equity works for you - that's what we would like to do once we get through this whole mess.

Thanks!

[jmartin]

Talk to the mtg co and they confirmed they sent pymt history to us and to the bank we want to refiance with, also asked them if we had to reopen file under ch 13 and they said no we have to ask the bk court for a form called
" order of vacating of discharge" under the ch 7 case. Does anyone know what this does or means? I don't know if this might help but we live in Texas and I know some laws vary state to state.
Also if the mtg co is not reporting to the credit bureau does this help or hurt trying to rebuild our credit?

[SinkingFast]

I'm assuming they mean file a Chapter 13 when they say 'reopen'?

We had the same thing. We were told even if we're utd on all payments, they have the right not to accept our reaffirmation. The mortgage co. told us we'd either need to refi w/ another co. or file again (meaning Chapt. 13). I'm in the middle of all of this as we speak - we'll see what happens.

Keep us posted on how the equity works for you - that's what we would like to do once we get through this whole mess.

Thanks!

You can reopen a Ch 7 as well. And from Macah's comments about staying current on the mortgage to avoid Foreclosure, sounds like they did file Ch 7.