Mrtgage not reaffirmed after chapter 7
Date: Thu, 09/02/2010 - 16:51
Hello,
My chapter 7 bankruptcy was discharged two years ago. I kept my house and my car. I did not reaffirm the debt for either. I was completely unaware of the option to reaffirm and what it meant. I have always been current on both my mortgage and car loan. I discovered recently that the car shows discharged on my credit report, but the mortgage reports current. I'm in the process of trying to refinance and was trying to figure out why my car payments don't show reported. The auto company explained to me that I'm not liable for the remaining debt if I was to return the car to them. They also stated that I could make an acceptable offer to keep the car and erase the rest of the debt (wish I had known this before).
I am now wondering if these options are available with my home. I kept the house because I thought I would be able to refinance, as rates were dropping. Now, I'm unable to do so because it is worth about what I owe on it ($220,000). Is it possible (if I were able to obtain financing) to make an offer on my own home for much less (maybe $170, 000) than I owe and to not be liable for the remaining debt? I can't imagine that this could be an option, but it would surley keep me in my home, lower my payments and prevent the bank from being stuck with yet another foreclosure.
Also, should the lawyer have informed me of debt reaffirmation and if the mortgage was discharged, why is it still reported to the credit bureaus as current?
I would really appreciate any advice.
Maggie
PS I'm in Massachusetts:D
My chapter 7 bankruptcy was discharged two years ago. I kept my house and my car. I did not reaffirm the debt for either. I was completely unaware of the option to reaffirm and what it meant. I have always been current on both my mortgage and car loan. I discovered recently that the car shows discharged on my credit report, but the mortgage reports current. I'm in the process of trying to refinance and was trying to figure out why my car payments don't show reported. The auto company explained to me that I'm not liable for the remaining debt if I was to return the car to them. They also stated that I could make an acceptable offer to keep the car and erase the rest of the debt (wish I had known this before).
I am now wondering if these options are available with my home. I kept the house because I thought I would be able to refinance, as rates were dropping. Now, I'm unable to do so because it is worth about what I owe on it ($220,000). Is it possible (if I were able to obtain financing) to make an offer on my own home for much less (maybe $170, 000) than I owe and to not be liable for the remaining debt? I can't imagine that this could be an option, but it would surley keep me in my home, lower my payments and prevent the bank from being stuck with yet another foreclosure.
Also, should the lawyer have informed me of debt reaffirmation and if the mortgage was discharged, why is it still reported to the credit bureaus as current?
I would really appreciate any advice.
Maggie
PS I'm in Massachusetts:D
Quote:Originally Posted by Anonymousbumping for Maggie i would
Quote:
Originally Posted by Anonymous bumping for Maggie |
i would have thought your attorney would inform you of debt reaffirmation as I had no attorney and new about debt reaffirmation. I did not know about the part with the car and offering them a reasonable offer to settle that. hmmm.... maybe i could look into that because I'm not discharged yet.