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Reaffirmation of Mortgage after BK?

New Visitor

Did not reaffirm mortgage. Can't get an auto loan. Now what?

We are dealing with this right now. We chose to keep our home when we filed for Ch. 13 (it was later converted to Ch. 7) because we were up to date on the mortgage, although we did not reaffirm the loan. We stayed current until my husband lost his job. We were told by Wells Fargo that we could apply for loan modification under the HAMPprogram but we had to be behind on or mortgage payments to qualify. It took 11 months for the modification to go through. Fast forward almost 2 years, we just applied for an auto loan and find out our mortgage payments are no longer reported to the credit agencies and Wells Fargo is also showing that our loan is $11,000 behind. Statements show the account as current. The $11,000 was rolled into the modification. But, because the loan was not reaffirmed during the bankruptcy, current payments aren't reported and the $11,000 worth of missed payments won't go away. Wells Fargo recommended we speak with our lawyer about reopening the bankruptcy to reaffirm the loan. We owe $203,000 and our home is probably worth $175,000. 

Message 11 of 16
Regular Contributor

Re: Did not reaffirm mortgage. Can't get an auto loan. Now what?

As for reporting on your montgage not going to happen, because the loan is between you and bank with the house as collateral. after you file for bk you broke the bond between you and the bank.  you can walk away any time without  problems or without damage to your credit. the bond is now between the house and the bank only, but once you paid off the loan the property is yours. if you want you house loan to report on your cr then you have to get an another montgage.

Message 12 of 16
New Member

Re: Did not reaffirm mortgage. Can't get an auto loan. Now what?



I don't want another mortgage. The interest rate is too good.  Thanks for clarifying.  I guess I'll just rely on credit cards and new loans to raise credit.

Message 13 of 16
New Member

Re: Reaffirmation of Mortgage after BK?

Comet21 wrote:

But if you did not reaffirm then LEGALLY you do not have to pay and you have no obligations to the mortgage. I am surprised you still have online access. I can only see my balance but when I click on it, it says that I need to contact Customer Service. 

I filed my Chapt 7 BK last week and included the mortgage we have from BofA. Now, when I log into my BofA online, just like you, I can see the balance, but it won't give me access anymore and tells me I need to call Customer Service. I had a scheduled payment before they took away my access and it did not go through. When I call the number it tries to send me to a bankruptcy department.


We plan on keeping the house and staying current on the payments (per our discussion with our attorney too). How do we do this if they took away our online access? They don't send us a bill every month to be able to pay by check.

Message 14 of 16
Established Contributor

Re: Reaffirmation of Mortgage after BK?

Call and speak to the bankruptcy department. In some cases you can authorize them to send you what looks like a bill, but has a statement in it saying that it isn't a bill. You could also just get an address to send payments to and just pay using your bank's bill pay feature.
Message 15 of 16
Regular Contributor

Re: Reaffirmation of Mortgage after BK?

You can also Transfer Funds in the amount of your regular payment to the mortgage account. I believe that is what I had to do until we reaffirmed.

Starting Score: TU 477 EQ 533 BK 1/27/2012
Current Score: EX 702 TU 681 EQ 652 1/10/2014
Goal Score: 700

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Message 16 of 16