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TJ, Esq.
TJ, Esq., Attorney
Category: Real Estate Law
Satisfied Customers: 12216
Experience:  JD, MBA
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My bankruptcy was discharged 3 years ago this June, we reaffirmed

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My bankruptcy was discharged 3 years ago this June, we reaffirmed our home and and equity loan, we thought. Last summer when we tried to refinance the house for a lower rate, we were told the house wasn't reaffirmed but the equity loan was. The mortgage specialist said we can't re-fi a bankruptcy but our lawyer said we could and he can't do anything to help because the case is discharged and therefore closed. I tried calling other ers and they just said the case was closed. In the copies of the papers it is mentioned several times we wanted to reaffirm the mortgage, our lawyer says the bank must have lost the papers?! Can we fix this?
Hello and thank you for allowing me the opportunity to assist you.

It is the lender's responsibility to file the reaffirmation agreement. Bear in mind that the lender is not required to let you reaffirm the debt. Accordingly, while it's possible that the paperwork was lost, it is also possible that the lender simply opted not to let you reaffirm the debt for some reason.

As for what you can do, your attorney can file a motion to reopen your case for the purpose of allowing you to reaffirm the debt. Prior to that, however, you should first determine whether the lender will cooperate. Therefore, I would contact the lender's bankruptcy department to inquire about this issue. If the lender agrees, then the motion to reopen can be filed.

As an aside, you do not have to reaffirm the mortgage to accomplish what you'd like to accomplish. Instead of applying to refinance, you can simply apply for a mortgage in which the proceeds will be used to settle the first mortgage. It's quite possible that the mortgage specialist you spoke to simply does not understand. He/she may have merely seen that there was no mortgage to refinance, without understanding the issues.

In any event, I wish you luck!

Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied. Also, your positive feedback is much appreciated.

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