You are here:

Bankruptcy Law/Re-affirmation on 2nd mort. that was never filed

Advertisement

Expert: - 3/10/2010


Question
We filed chapter 7 bankruptcy May 2009,  In July 09 we signed a reaffirmation for our 1 st mort. with Litton Loan Servicing and  the 2nd mort with GMAC. Our Laywer sent in all the paperwork, we got our discharge in Sept 2009.  We thought everything was fine. In Oct 2009 our 2nd Mort was acquired by Specialized Loan Servicing. We have never missed a payment but as of Feb 1st,  SLS is saying the re-affirmation is not in our Bankruptcy case records on the Bankruptcy web site.Where do we stand at this point? We sent them a copy of the re-affirmation papers we signed with GMAC(our 2nd mort at the time) but since it was not filed by the court they are saying it is no good, and they are not sending us statements or giving us access to info about our acct.  Our Lawyer said it was not his place to file the papers for the re-affirmation, That he sent them to GMAC and it was their place to file them with the court.  What happens if we decide to sell the house, Are we still responsible for paying off our 2nd mort?
Hope you can help us. We are in Tennessee.

Thanks

Answer
Not filing the reaffirmation agreement is probably the smartest thing you did (or didn't do) in your case.  If you decide to sell the house the buyer would have to pay off or assume all the debts regardless.  But the benefit you have now is that if it is foreclosed on, you have no further obligation to pay, whereas if the reaffirmation had been filed and approved, you would be obligated for any deficiency after sale.

http://www.bklaw.com/

Bankruptcy Law

All Answers

Answers by Expert:

Ask Experts

Volunteer

Mark J. Markus- California Bankruptcy Attorney

Expertise

Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

Experience

Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

  • Which Chapter to File,
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Do You Need a Lawyer to File Bankruptcy?
  • Frequently Asked Bankruptcy Questions

    Also visit our Los Angeles bankruptcy blog for interesting articles and much more.



    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

    Awards and Honors
    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

    • ©2012 About.com, a part of The New York Times Company. All rights reserved.