If I just received by Chapter 7 discharge and did not re-affirm my mortgage can I refinance my home?

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If I just received by Chapter 7 discharge and did not re-affirm my mortgage can I refinance my home?

Can I refinance my home with another mortgage company? How long must I wait? I have always paid mortgage on time (1 late payment due to mortgage company’s error. Mortgage company never removed the late payment). By not having a reaffirmation agreement, is it true the mortgage company is able to place me in foreclosure if I miss “1” payment or late paying?

Asked on July 21, 2011 Pennsylvania

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

You have asked several different questions.  To answer your first question:  Yes, you can refinance your mortgage any time you want.  Whether it's advisable to do so is another story altogether.   If you did not do a reaffirmation agreement, then you basically have a mortgage debt that you would have no further obligation on in the event the property is sold or foreclosed on in the future.  If this is a junior mortgage (and in some States, even the 1st Mortgage) sometimes there can be recourse against you (in the absence of a bankruptcy discharge) upon foreclosure.  Bankruptcy wiped out that obligation, but if you refinance, that's a new loan and not covered by your bankruptcy discharge.

To answer your second question, your mortgage lender can commence foreclosure if you default on your Note and Deed of Trust regardless of whether or not the debt was reaffirmed.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

Follow Me on Twitter:  @bklawr

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

You have asked several different questions.  To answer your first question:  Yes, you can refinance your mortgage any time you want.  Whether it's advisable to do so is another story altogether.   If you did not do a reaffirmation agreement, then you basically have a mortgage debt that you would have no further obligation on in the event the property is sold or foreclosed on in the future.  If this is a junior mortgage (and in some States, even the 1st Mortgage) sometimes there can be recourse against you (in the absence of a bankruptcy discharge) upon foreclosure.  Bankruptcy wiped out that obligation, but if you refinance, that's a new loan and not covered by your bankruptcy discharge.

To answer your second question, your mortgage lender can commence foreclosure if you default on your Note and Deed of Trust regardless of whether or not the debt was reaffirmed.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

Follow Me on Twitter:  @bklawr


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