If you don’t reaffirm your home loan in bankruptcy but continue to make payments on time, can the bank take your house several years down the road?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If you don’t reaffirm your home loan in bankruptcy but continue to make payments on time, can the bank take your house several years down the road?
We filed Chapter 7 last year. We attempted to reaffirm our home but the judge didn’t allow it. We have never been late on our house payment and have continued to make payments on time to date. We have about $15,000 in equity in the house. Home values in this area have stayed steady through the recession and the area is still growing rapidly. Our property is on the main strip through town and as development moves toward us we expect our home value to increase dramatically. If we continue to make all our payments on time can the bank take our house several years down the road?
Asked on June 13, 2011 under Bankruptcy Law, Kentucky
Answers:
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 12 years ago | Contributor
The bank can only "take" your house (i.e. foreclose) if you fall behind on your contractually due payments or default on other provisions of your Promissory Note and Deed of Trust. Reaffirmation has nothing to do with it. In fact, you're very lucky the court did not allow the reaffirmation. It would have accomplished nothing for you except to make you liable for a deficiency in the event your property is foreclosed on someday.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 12 years ago | Contributor
The bank can only "take" your house (i.e. foreclose) if you fall behind on your contractually due payments or default on other provisions of your Promissory Note and Deed of Trust. Reaffirmation has nothing to do with it. In fact, you're very lucky the court did not allow the reaffirmation. It would have accomplished nothing for you except to make you liable for a deficiency in the event your property is foreclosed on someday.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.