Sentences with phrase «reaffirmation agreements do»
Reaffirmation agreements do not improve your credit score, are usually always made in favor of the creditors, are not required by law, do not guarantee you will pay for the loan, and the debts covered by them can not be discharged in bankruptcy.
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You do not sign the reaffirmation agreement to own the house.
It bears repeating: YOU DO NOT HAVE TO SIGN A REAFFIRMATION AGREEMENT TO KEEP YOUR HOUSE.
The reason that we tend not to see reaffirmation agreements on home mortgages has to do with Minnesota's status as a non-recourse state.
Unlike car loans, in which reaffirmation agreements are offered without fail, some lenders don't propose reaffirmation agreements.
But that person - the client who does not sign a reaffirmation agreement - only has one car payment.
That's the problem with signing reaffirmation agreements: there's a possibility that by doing so, clients will be creating extremely expensive obligations for something that almost every adult needs: a functional car.
And since filing a bankruptcy case, or filing to sign a reaffirmation agreement following the filing of a bankruptcy case is not grounds for a mortgage lender to start a foreclosure, the non-signing client really doesn't face the same risks that a non-signing client does with a car loan.
So the bankruptcy discharge that would otherwise eliminate the debtor's personal liability on a mortgage loan or car loan does not apply to the secured debt that is the subject of the reaffirmation agreement.
Signing a reaffirmation agreement should not be done as a routine matter.
If you intend on surrendering your car, do not sign a reaffirmation agreement.
On the other hand, if you signed a reaffirmation agreement without the knowledge of your lawyer and the bankruptcy court and the items were actually discharged, you may have a legal case that you do not have pay the creditor.