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Reaffirm mortgage

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daviewavy

Junior Member
What is the name of your state?
Tennessee


I filed Ch. 7 in May of 2001 and was discharged in Sep. 2001. I asked to reaffirm my mortgage with Fleet at that time, which was brought out by WAMU during my bankruptcy. I have made my payments on time and have recently found out that this was discharged through Bankruptcy and was never reaffirmed. The mortgage has been taken out of my CK account for 4 years. I've been told that my attorney should have given me the Reaffirmation papers to sign. The Mortgage co will not report to the Credit Bureaus that I do make these payments. My BK papers do show that I was to retain my property. What are my options? Can I sue my attorney for misrepresentation, (He actually failed to appear in court and some other attorney stepped up to help me and) Can I force the mortgage co to reimburse me monies they have taken over the past 4 years even though their records show it was discharged. I just want to protect my investment, but if it was discharged, then why does the mortgage co still take my money. And why didn't my attorney have the reaffirmation papers for me to sign?
 


bigun

Senior Member
. I just want to protect my investment, but if it was discharged, then why does the mortgage co still take my money

Because, you continue to pay. If you don't want the home anymore, you can walk away and not be liable for any deficiency.
I've no idea what happened with your lawyer but in my opinion, you should never reaffirm anything unless your district requires it.
 

HomeGuru

Senior Member
daviewavy said:
What is the name of your state?
Tennessee


I filed Ch. 7 in May of 2001 and was discharged in Sep. 2001. I asked to reaffirm my mortgage with Fleet at that time, which was brought out by WAMU during my bankruptcy. I have made my payments on time and have recently found out that this was discharged through Bankruptcy and was never reaffirmed. The mortgage has been taken out of my CK account for 4 years. I've been told that my attorney should have given me the Reaffirmation papers to sign. The Mortgage co will not report to the Credit Bureaus that I do make these payments. My BK papers do show that I was to retain my property. What are my options? Can I sue my attorney for misrepresentation, (He actually failed to appear in court and some other attorney stepped up to help me and) Can I force the mortgage co to reimburse me monies they have taken over the past 4 years even though their records show it was discharged. I just want to protect my investment, but if it was discharged, then why does the mortgage co still take my money. And why didn't my attorney have the reaffirmation papers for me to sign?

**A: I do not believe you have told us the complete and true story.
 

daviewavy

Junior Member
Ahh, but I have.

The mortgage has been set up as an automatic draft since I filed BK.
I got copies of my credit report from the 3 agencies in June of this year. That is when I noticed it shows as discharged. I contacted Washington Mutual and they did an investigation and said their records show it was discharged.
I asked why they have continued to take the payments out each month and he wouldn't answer. The mortgage company was Fleet when I filed bankruptcy and merged with Washington Mutual during my Bankruptcy. I received a letter from WM stating they had an interest in my bk and that all notifications should be sent to them. The letter stated that a copy was sent to the court trustee and my attorney. The past four years, I have assumed that everything is ok. The mortgage co. shows I have a loan with them and they give me a balance when asked, but do not report to the credit bureaus. I just want to know how I can make sure the mortgage company can't come back and take the property when they want. I talked with my attorney last week and he said he would get it taken care of and to call him back in the middle of October if I haven't heard from him. I know if this was discharged, I'm not responsible for the debt, but why does the mortgage company still take the mortgage payment? I have never seen the reaffirmation papers to even sign. Whether that's my attorney's fault or the Mortgage company's remains to be seen. I just want to know what my options are, other than refinancing. thanks
HomeGuru said:
**A: I do not believe you have told us the complete and true story.
 

chris7

Member
A lot of people do not reaffirm but still want to keep their house or car. The way it works is that you continue to make payments and the company lets you keep the property. As you have found out, the advantage of reaffirmation is that your payments will continue to be reported to the cr agencies, while if not reaffirmed it will show as discharged regardless of whether you continue to pay or not. I have no idea what happened with your attorney. My experience was that bankruptcy had to be a pro-active experience. No way was I going to sit back and trust my attorney to get done everything that needed to get done because I was the one that was going to suffer the consequences if something was overlooked, not him. I have no idea if you can retroactively reaffirm. But the reason your mortgage company keeps taking your payments is because you have not cancelled them and you presumably want to keep living in your house. If you don't, this is kind of a get out of jail free card. The house has been discharged so you could legally walk away (if you wanted to). If not, keep making the payments and keep following up with your attorney to see if you can retroactively reaffirm (although I think it had to be done in a certain time frame).
 

daviewavy

Junior Member
Thanks

This mortgage is for a Condo that I have been renting out. I have since purchased another house and live in it. I am waiting to see what my attorney can do. If all else fails, I will refinance the mortgage. The whole thing in a nutshell is that I do make these payments and I believe it should reflect that on my credit report. If I hadn't filed bankruptcy or did reaffirm and missed a payment, you can bet they would report that. Thanks for the advise guys, much appreciated.
 

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