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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Originally filed a Chapter 13 but had to convert to a Chapter

Customer Question

Originally filed a Chapter 13 but had to convert to a Chapter 7 after wife lost job. Not signing Reaffirmation Agreement requested by bank for our mortgage. What happens after Chapter 7 discharge? Is our house exempt in California and we can actually stay without further payments? House is WAY under water by Mortgage $369k, today's value by Chase Bank - Owner, $217k. Thank you.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 6 years ago.
why didn't you sign the agreement, if the mortgage is discharged, the bank will become the owner and you will not be obligated to pay the debt, if you reaffirm the mortgage, you continue to pay them, and your unsecured debts would be discharged.

If the chapter 7 goes and the mortgage is discharged, the bank will become owner and will try to sell the property, you would be allowed to stay as long as you want until an actual eviction starts which could be three months to one year, without paying a mortgage.
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Customer: replied 6 years ago.

Our BK attorney says HE won't sign the reaffirmation agreement to 'protect the clients'. We are totally confused as what that means. Awaiting a meeting with him so wanting to know questions to ask. Everyone says NOT to sign. So confusing.

Expert:  WALLSTREETESQ replied 6 years ago.
If you sign, you have to pay the mortgage or they will sue you and you may owe any balance, only sign the reaffirmation agrreement if you are sure that you can afford the mortgage payment.