Never signed reafirmation during our Bancruptcy. Is it ours?

[Bettina Gordon]

What is the name of your state? Texas
We got discharged from out Chapter 7 Bankruptcy in 2001. We never signed a rearfirmation for our mobile home, only on our car. In the court papers for the discharge, nothing was itemised in regard to what was discharged and what was not. Nor is anything indicated in our credit report in regards to the house. We keep on getting letters from the creditor, because of none payment, but it always says " this is not a bill or letter to collect a debt". Now we are confused. Was the house included or not? Are we liable for the payments? Or is it ours?
Please help

[Ladynred]

Just because you didn't reaffirm doesn't mean you get to keep the mobile home for free. The loan is a SECURED debt. If you don't make the payments, then they can foreclose or repo it. Since you signed no reaffirmation agreement, the debt WAS discharged so you could walk away from it without owing a dime.

Have you not paid on this in 4 years ???

Discharge letters do NOT itemize what was discharged. If it was a dischargeable debt and you listed it in your petition, then it was discharged.

[toughluck73]

If the letter says

" this is not a bill or letter to collect a debt"

then it was most definintely discharged. But they can take it back still, since it was most likely a secured debt.

[Bettina Gordon]

We paid for untill last October. And we don't know if the Lawyer put it on the petition. He actually wasn't very helpfull. He took our money and got on with the job. He also made some mistakes.

[Ladynred]

From the sound of it you don't have a copy of your BK petition. Call the bankruptcy court or go there and GET a copy of your case file. Then put it in a safe, fire-proof box and hang onto it for the next 20 years !!!

The lender can do NOTHING that smacks of COLLECTION on even a discharged mortgage, but if you quit paying, they CAN foreclose/repo the mobile home. I'm surprised they've done nothing so far. Its possible the home isn't worth their trouble or the cost of taking it.

[Bettina Gordon]

I am surprised too that they have not done anything else besides sending those letters. It's been 7 months since the last payment. I do think though that the house is still worth for them to take. It's only 6 years old!!! Do you think I need to talk to a Laywer to find out for sure about this situation ? And also, do you know how much time they have to give you for moving out, if they should reposes the home?

[toughluck73]

“Nor is anything indicated in our credit report in regards to the house. We keep on getting letters from the creditor, because of none payment, but it always says " this is not a bill or letter to collect a debt". Now we are confused. Was the house included or not?”

The fact that the letter clearly states that “this is not a bill or letter to collect a debt.” means that IT MOST DEFINITELY WAS included in the bankruptcy. Otherwise the letter would have included a message stating “This information is from a debt collector. This is an attempt to collect a debt, and any information obtained will be used for that purpose

“Are we liable for the payments? Or is it ours?”

Well that depends. Do you want to keep the house? If you don’t, I suppose you could simply walk away from it, although I don’t know if you are renting the space the house sits on or if it sits on your land? If you do want to keep it, you will have to pay the debt to obtain the title. Mobile homes do depreciate quickly, and the house may not be worth foreclosing and the lender may not foreclose on it, but they more than likely will not give up the title for nothing. Also, I have a good friend who runs a mobile home park and she tells me that if you are behind on your mobile home space rental (the rented land that your home is sitting on) they have to settle this debt before they can foreclose. I am not sure as to why, but if you rent the space, like at a trailer park, then this back rent has to be paid, so if they suspect that you are behind on rent, then they have to factor this additionally cost onto the overall cost of foreclosing.