What are the benefits to sitting on a non-affirmed loan?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What are the benefits to sitting on a non-affirmed loan?
About 2 years ago, my wife and I filed for bankruptcy. We had a very bad investment property that went south very quickly. We did not reaffirm our current home. We are trying to reestablish our credit without a car loan. I am concerned that in the future (3 to 5 years from now) my career could require us to move away from the area. With poor credit I’m concerned that we won’t be able to get a loan for a house. We are not upside down on our current loan. Other than the liability are there any repercussions to reaffirming or refinancing our home at this time?
Asked on March 11, 2013 under Bankruptcy Law, New Hampshire
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Was your bankruptcy discharged with out reaffirming the mortgage? If the answer is yes then the debt was discharged as to you and your wife. The fact that you continue to make payments does not change the fact that you are not personally liable for the debt. Please speak with a bankruptcy attorney here and weigh the factors. If you are able to pay the mortgage and the bak is going to offer you a great deal on refinancing the mortgage then it may be a good idea to reaffirm. But I would not sign anything unless it is offered as a package so to speak. Good luck.
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.