02-19-2013 12:39 PM
Close to 6 years ago I declared bankruptcy. It was always my intent to keep my home, sofa, refrigerator and car. I also had a 2nd mortgage that was included in reaffirmation agreement. It was Chapter 7 and up until a couple of years ago everything seemed hunky dory. Then also of a sudden I notice I was getting bankruptcy messages on the bottom of my Case Mortgage statements. I called and ask them and they said they never got the paperwork. I called my lawyers then and they said that it was the banks responsibility. Went round and round and then I would give up for awhile and try again to get it sorted.
Today, I finally have the documentation to prove that a reaffirmation request was sent to Chase and they never acted on it. All others did: My car (Wells Fargo), my 2nd mortgage (Citibank) and HSBC for the sofa and car.
My questions are...what do I do now? None of my payments the last 6 years have shown up on my credit report. How do I approach Chase and help me make this situation right? Are there other ramifications for them dropping the ball?
I would so appreciate any wisdom.
02-22-2013 05:21 AM - edited 02-22-2013 05:23 AM
Reaffirmation agreements must be approved by the judge in BK court. You and your lawyer share some responsibility for not noticing that the agreement was never returned, or ruled on by the judge.
Essentially you have done a "stay and pay". You don't owe the mortgage, Chase has a security interest in your home. There's a credit score impact for not having the mortgage reported, but if the second is reporting that isn't even a real issue because you have a mortgage loan on your report.
Six years out of BK with payments on both mortgages, do you have positive equity in your home? Why not try to refi the two loans into a single one at today's rates?
To reaffirm Chase now would require reopening your BK to file the reaffiramation agreement with the court. I would never do that...
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