Reply
Valued Contributor
Posts: 2,081
Registered: ‎08-24-2013
0

REAFFIRMATION AGREEMENT - proceed very carefully

For anyone current considering filing a bankruptcy petition in which they may be considering signing a reaffirmation agreement, be extremely careful. I am learing a painful lesson that is causing me serious pain and legal expense to address. My recommendations based on my own experience are:

 

1) Check the math in the reaffirmation agreement. It is required that the amount owed be listed in the agreement as well as how that amount is calculated.

 

2) Ensure that the reaffirmation agreement include a note excluding any subsequent fees/charges by the creditor for which you may be liable.

 

3) A reaffirmation agreement can be rescinded within specific timeframes so know what they are.

 

4) Request language to be added to the agreement that specifies the ststus of the original finance agreement and the legal clauses in it.

 

I an struggling to refianance my reaffirmed loan because the auto finance company added $14,000 of "legal fees" to my account on top of the principal balance of the original loan. The finance company is claiming to have the right to charge legal fees "to defend their asset" as stated in the original finance agreement.

 

Your attorney must sign the agreement to avoid a court hearing on the agreement. Remember that the court has to approve the agreement after verifying that continuing to make payment will not cause a hardship to the debtor.

 

Seems my case is unique because I have yet to find any info, from anyone, that addresses the legality of a creditor requiring payments of money not included in the reaffirmation agreement. I hope that my experience helps some to avoid the situation that I'm in.

 

Latest status: My attorney told me today to tell the credit union to go ahead with my refi and ignore the reference to legal fees on the payoff notice. I contacted my rep at the credit union and expected that she would say "No way. We cannot do that.". Instead, she emailed me asking that I bring to her my registration and insurance card showing the credit union as lienholder. I plan to do just that on Saturday. 



Starting Score: 618
Scores on 10/9/13: EFX 652, XPN 669, TUC 662
Scores on 3/17/14: EFX 649, XPN 677, TUC 681
Goal Score: 720 ALL


Take the myFICO Fitness Challenge
Valued Member
Posts: 33
Registered: ‎09-16-2013
0

Re: REAFFIRMATION AGREEMENT - proceed very carefully

I hope everything goes well for you! Thank you for this advice :smileyhappy:
Valued Contributor
Posts: 2,081
Registered: ‎08-24-2013
0

Re: REAFFIRMATION AGREEMENT - proceed very carefully

As posted above, I wentt to my credit union this morning and completed the paperwork for the refi of my auto loan. Got one at 5.5% to replace my 21% current one. Now I wait to see if they would give us any trouble to release the lien on my car. I so regret reaffirming that auto loan!



Starting Score: 618
Scores on 10/9/13: EFX 652, XPN 669, TUC 662
Scores on 3/17/14: EFX 649, XPN 677, TUC 681
Goal Score: 720 ALL


Take the myFICO Fitness Challenge
New Contributor
Posts: 56
Registered: ‎02-18-2013
0

Re: REAFFIRMATION AGREEMENT - proceed very carefully

interesting info. thank you for sharing your advice. good luck with release of your lien.


Ch13 filed 3/2009 : discharged 1/2014
Starting 2/16/2013:
EQ673 TU667
Current 12/30/2014: EX676 EQ684 TU668
Goal: 750

Take the myFICO Fitness Challenge
Valued Contributor
Posts: 2,081
Registered: ‎08-24-2013
0

Re: REAFFIRMATION AGREEMENT - proceed very carefully


makeupho wrote:

interesting info. thank you for sharing your advice. good luck with release of your lien.


Thank you. The payoff went out via UPS yesterday so I expect that the credit union will notify me in the next couple of days if their request for the lien to be released was denied.



Starting Score: 618
Scores on 10/9/13: EFX 652, XPN 669, TUC 662
Scores on 3/17/14: EFX 649, XPN 677, TUC 681
Goal Score: 720 ALL


Take the myFICO Fitness Challenge
Valued Contributor
Posts: 1,267
Registered: ‎11-14-2013
0

Re: REAFFIRMATION AGREEMENT - proceed very carefully

I'm curious. What will the credit union do if they don't get the lien release?
BK Discharge 2/11/14

Currently in the garden.
Valued Contributor
Posts: 2,081
Registered: ‎08-24-2013
0

Re: REAFFIRMATION AGREEMENT - proceed very carefully


0REDSOX7 wrote:
I'm curious. What will the credit union do if they don't get the lien release?

I have no idea ... but I'm hoping that it does not happen. If it does, my next step will be to contact the trustee and request that he step in and tell the auto loan company that they are not allowed to do that or that they have to apply to the court for permission to charge any fees not listed in the reaffirmation agreement. Will update here in a few days as I'm sure we'll know right away which way it will go. The legal fees they are charging has nothing to do with the loan on the car and that is the opinion of several attorneys who have responded to my query on a legal website.



Starting Score: 618
Scores on 10/9/13: EFX 652, XPN 669, TUC 662
Scores on 3/17/14: EFX 649, XPN 677, TUC 681
Goal Score: 720 ALL


Take the myFICO Fitness Challenge

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.