Expert: Terry Leeders - 7/29/2009

Question
can a person reaffirm a house note when filing bankruptcy. can note be reaffirmed even though house is already in foreclosure..
this is in the state of Alabama.  There is a person who is approved to buy the house from me to keep it from being sold in foreclosure on Aug 25.  should I sale to this person or try to reaffirm?

Answer
The lender usually will not allow you to reaffirm until you are current on the loan.  The bankruptcy stops the foreclosure, and you would need to refinance or work a loan modification with the lender.  You also can sell it before the foreclosure completes.  Reaffirming keeps you on the hook, and possibly for the deficiency balance if they don't get the full amount of the loan at sale!!