keeping house after chapter 7

[Anonymous]

Not sure if this forum is the place to post this. I have a quesetion about chapter 7 bankruptcy. We filed in 2008. We live in Nevada. I've continued to live in my house ever since and have never missed a payment. We didn't reaffirm the mortgage in 2008 though. Didn't reaffirm the 2nd either. We put a lot of money down originally so never wanted to walk away if we didn't have to. House lost 60 percent of it's value in 2008 so our attorney said we shouldn't reaffirm real estate in that situation. My question is: is the house still mine in every way? The deed is in my name. The mortgages are in my name. I thinks it's as if I'm voluntarily repaying my mortgage and living in my house. Does not reaffirming the mortgage in 2008 (or ever since) mean the house isn't mine? Can I refinance without an issue? Can I sell it without an issue? The value of the house is worth a lot more than I owe now and at some point it will be worth refinancing, selling or paying off down the road. Any input is appreciated...

[Anonymous]

@Anonymous

Welcome to MyFICO

I have moved your post to the bankruptcy forum where someone should be able to answer your question.  Good luck

[Anonymous]

Thanks Irish80!

[DaveInAZ]

Yes, the house is just as much yours as it was before you filed. You can sell it or refi, the 1st & 2nd have continued to amortize your payments, applying them against interest and principal, and will provide a payoff balance for either a sale or refi.

I filed BK7 in 2010 and didn't reaffirm, I'm now taking out a home equity loan, the non reaffirmed 1st mortgage not an issue,

[Anonymous]

That's great news DaveInAZ. Thanks! I'm wondering what the point of reaffirming is? Seems like since I didn't reaffirm that it doesn't show up on my credit report though. I still have my 2 mortgages and never miss a payment but my credit report shows them as closed and no payments made for many years. Does not reaffirming make that happen I wonder? The importnat thing is that when I try to sell, payoff or refinance that I don't then learn those things are not possible because I don't really own the house because I didn't reaffirm my loans in 2008. That's really the only thing that counts. Once I refinance, that will probably show on my credit from that point I bet.

[DaveInAZ]

Yes, one downside of not reaffirming is that it shows as discharged in BK on your credit report, no one knows about your continued payments except you and the bank. Small price to pay. When you refi that will show on your credit report, and should boost your score.

You were wise to not reaffirm in 2008. I sold my house in Vegas in 2005 and moved to AZ. I sold it for 330k, paid only 130k in 1999. It sold in a short sale in 2010 for 150k.

[Anonymous]

I filed back in 2015 - this is why I hate reaffirmation. To put it simply it's just under creditor's rights from what my attorney told me. In my state - DE - I signed my reaffirmation and my attorney told me that they never go through and sure enough it didn't. The house is still yours though as long as you keep making payments. 

I am sure if you need to "reaffirm" your attorney could probably reopen your case for you and you can handle it that way if you're worried about it!

Good luck!

[Anonymous]

Thanks mchanning & DaveInAZ. Very helpful