Expert: Norma Duenas - California Bankruptcy Attorney - 6/7/2010

Question
My father filed for bankruptcy and it was closed in 2005. His mortgage was excluded from the bankruptcy.
This past year he went to refinance, and they told him he couldn't since his home was never reaffirmed.
Is there anyway around this? Can he still refinance or does he have to hire a lawyer to reopen the bankruptcy to get the home reaffirmed?
If he hires a lawyer, is he guaranteed to get his home reaffirmed?

Answer
Based on the information you provided, I am assuming that he was denied a refinancing from his existing lender. Although your existing lender may not allow you to refinance with them because you did not reaffirm the mortgage, there is no reason that you shouldn't be able to refinance with another lender. There is no requirements that you reaffirm your mortgage in a bankruptcy and from my point of view you should be able to refinance without having to open your bankruptcy case and reaffirm your mortgage. Reaffirming your mortgage has benefits and drawbacks. When you reaffirm your mortgage your personal liability for repaying the mortgage remains. The benefit is that the creditor will continue to report your monthly payments to the credit bureaus which will help you reestablish your credit.

As to your second question, there is no guarantee when you hire an attorney. The best an attorney can do is evaluate your situation and tell you whether from his experience what is needed can be accomplished.

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