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A foreclosure proceeding that missed a recorded discharge of the mortgage may be defective. In certain states and depending on the level of the defect- the foreclosure may need to be done over from scratch. In that case you may find some assistance that was not available before pursuant to new consumer protection provisions relating to foreclosures. You would need to seek the advice of an attorney in your state who is familiar with the current foreclosure laws and bankruptcy law.

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Q: Foreclosure after discharge with no reaffirmation?
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If you are discharged from chap 7 and did not reaffirm your mortgage can you still surrender your home?

It's my understanding that when you sign a reaffirmation agreement, you then become liable once again for the loan. If the home was included in the bankruptcy, but no reaffirmation agreement was signed, you can "walk away" from the home at any time after the discharge and you're not liable. I've been told that the mortgage company will report it as a foreclosure though.


Does it count as a foreclosure if you already filed bankruptcy?

Yes, a BK does not negate foreclosure action it simply delays it. For the homeowner to avoid such action they must reach a solution such as reaffirmation of the lending contract with the mortgage holder.


Can you file for chapter 13 two years after a chapter 7 discharge to prevent foreclosure?

Yes, you can.


If you filed for bankruptcy and originally were going to keep a car and signed a reaffirmation agreement can you change your mind and turn it in under the bankruptcy before the discharge is signed?

Yes, contact your attorney IMMEDIATELY!


Can you reaffirm unsecured debts when filing a chapter 13?

No. Reaffirmation of debt is an option only in Chapter 7. Your unsecured creditors are paid according to your plan in chapter 13. Five requirements exist under the Bankruptcy Code in order to determine whether a reaffirmation agreement is valid: 1. The reaffirmation agreement must be entered into prior to discharge and it must then be filed with the court; 2. The agreement has to state that the debtor has the right to rescind the agreement either within 60 days after it�s filed or prior to discharge (whichever comes later); 3. If the debtor is represented by an attorney, the attorney has to sign and provide an affidavit verifying that the agreement is voluntary and does not impose an undue hardship on the debtor; 4. The debtor did not rescind the agreement within the required time; 5. That the agreement complies with the requirements of �524(c); and 6. If the debtor is not represented by counsel then the court will approve the reaffirmation agreement if no undue hardship is imposed and the reaffirmation is in the best interest of the unless it�s a consumer debt that�s secured by real property. Reaffirmation agreements are usually signed when the debtor wants to keep property that is security for a loan such as a house or car. It would be very unlikely for a court to approve the reaffirmation of an unsecured debt. However, there is nothing to prevent you from voluntarily paying the debt despite the discharge of the debt.


How do you reaffirm the home loan that was discharged in a chapter 7 bk over 1 year ago in Rhode Island?

You can't reaffirm a debt once the case is closed, unless for some reason the case was closed without a discharge. The last date within which you can reaffirm a debt is the date you receive your discharge. It is rare for a discharge to be vacated for the sole purpose of entering into a reaffirmation agreement. It makes no particular difference that your case arose in Rhode Island since bankruptcy law is a federal law. There is no difference in reaffirmation in Rhode Island compared to anywhere else in the United States.


What happens in foreclosure if you have filed bankruptcy?

In most cases, foreclosure action is suspended until the BK is ruled upon either by discharge or dismissal. The mortgage holder may request a stay from BK proceedings, if it is granted the foreclosure process as defined by the laws of the state in which the residence is located will continue.


If you are not able to make your house payment do you have to file bankruptcy or will the bank foreclose on the house and not garnish your income?

Bankruptcy only temporarily prevents foreclosure action. A house is considered secure property so it is up to the lender as to what action will be taken, foreclosure or reaffirmation of the loan. The bank would pursue foreclosure and not wage garnishment. If you're in a house you can't afford any longer, sell it. Too many homeowners wait too long. Don't wait for the bank to foreclose.


How do you get a 2nd mortgage discharged and keep your house?

You don't. A second mortgage is a secured loan, just as the first morgage. The difference is the first mortgage holder has priority if it involves a lien against the property or foreclosure rights. The only option is to try to negotiate with the lender for reaffirmation of the loan


Can you have back title of home after bankruptcy discharge?

If you lost the title through foreclosure or abandonment in the bankruptcy, probably not, but it depends on a number of factors. Consult a lawyer in your area.


Can I purchase another house if my house was discharge in chapter 7 but is not in foreclosure I'm still making my payments and living on it?

If your chapter 7 has been closed, yes - if you can find a lender for another mortgage. Your credit scores will have lowered because of the filing and discharge.


How does bankruptcy stop foreclosure?

The bankruptcy stay prevents any action by the lender until the BK is finalized. Be advised that a mortgage lender can petition the court to have said stay lifted so foreclosure proceedings can continue. That rarely happens though. Unless the debtor reaches an agreement with the mortgage holder to reafirm the lending agreement the foreclosure will likely occur after the BK discharge.