Reaffirm the loan

Hi, My wife and I just filled for Bankruptcy, chapter 7. After receiving the appraisal from my apartment(co-op), my attorney indicated that we can keep the apartment and our car. When Chase sent a letter asking me my intentions regarding the apartment, I was told that Fannie Mae does not allow to reaffirm the loan. I have also received a letter from Chase indicating:"to the extent your original obligation was discharged, or is subject to an automatic stay of bankruptcy under chapter 11, this statement is for compliance and/or information purposes only and does not constitute an attempt to collect a debt"
Can somebody please explain me what this means or my choices at this point?

Thank you,

Ricardo

have you talked to your attorney about this? Has your bankruptcy been discharged yet?

Your lender is letting you know that it understands you filed bk. It will gladly accept payments (hence the billing statement - some won't even send that) but it will not go after you if you do not. It's recourse is solely against the collateral if payments are not made.

As to reaffirming... There is absolutely no reason to sign a reaffirmation agreement for a debt that is secured by real property. Just continue to service the loan. Reaffirming means you are signing something that says "despite my bk, I will pay you. If I don't, not only can you take the collateral (which you have the right to do if I don't pay no matter what) but I am now giving you permission to sue the crap out of me as well".

Just make your payments and you will be fine.

As to your car, that is different. The bk law requires you to reaffirm a debt secured by personal property. Some lenders are sticklers (like Ford Motor Credit) while others are not. Your attorney should forward the documents to you once he/she gets them. In the mean time, continue to make the vehicle payments.

The above unregistered guest seems to be well briefed. Why not join as a member? We can use good contributors and you would earn points as well.

In response to:

"The above unregistered guest seems to be well briefed. Why not join as a member? We can use good contributors and you would earn points as well."

I might. I post routinely on another forum but the site is down and I am "trolling" because I am now hooked on this. This is how I unwind after a tough day at the office. Funny, I deal with these issues every day of the workweek and then come home to sit at my diningroom table for more. Sick, isn't it?

No I have the court appointment next Friday.(9/17)

Thank you for your prompt answer; I still have a question: why the statement indicates that:"to the extent your original obligation was discharged"? According to Chase Freddie Mae does not reaffirm and discharges the loan.

Please advise,

Thank you,

Ricardo

In response to:

"I still have a question: why the statement indicates that:"to the extent your original obligation was discharged"?"

The language is "boiler plate" and is sent to anyone who did or may have filed a bk. The reason it says "to the extent" is that some folks who file bk, for one reason or the other, do not get a discharge. The lender cannot "customize" the billing statement so it just makes one broad statement that covers everything. It does not matter that this is a Fannie Mae/Freddie Mac loan. Not all Chase loans are and, again, the servicer of the loan is not set up to "customize" its billing statements.

Hope this answers your question.

Best regards.