Sentences with phrase «reaffirmation agreements for»

In an earlier blog I discussed the pros and cons of signing reaffirmation agreements for first mortgages.

In my opinion, the client should never sign a reaffirmation agreement for a «junior» mortgage - either a second mortgage or a home equity line of credit.

Not exact matches

So the reaffirmation agreement gives the lender a right (sue for a deficiency) that it likely won't exercise.

Some lenders won't send monthly statements for your mortgage payments or allow you to set up automatic debits from your bank account without a reaffirmation agreement.

If you sign a reaffirmation agreement, you take that personal liability back on and allow the creditor to sue you for any deficiency if you default on the loan.

For more R terms: Reaffirmation Agreements - Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell Redemption - New York Bankruptcy Lawyer, Jay S. Fleischman Retirement - Bay Area Bankruptcy Lawyer Cathy Moran Repossession - Colorado Springs Bankruptcy Lawyer Bob Doig Reaffirmation Agreement - Cleveland Bankruptcy Attorney, Bill Balena Reaffirmation - Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein Redemption - Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein Rental vs. Continued Home Ownership - Philadelphia Suburban Bankruptcy Lawyer, Chris Carr Renting After Bankruptcy - Los Angeles Bankruptcy Attorney, Mark J. Markus Reaffirm, Redeem, or Retain & Pay?

Rather than repossess a vehicle that has a loan of $ 5000 against it (and receive $ 1000 for it at an auction), the smarter creditors will agree to just continue taking your money without a reaffirmation agreement if you're willing to continue paying.

Check out THIS POST for a more detailed explanation of reaffirmation agreements.

If the debtor defaults on payments after signing a reaffirmation agreement, the creditor will have the right to sue for a deficiency judgment.

If the client has signed a reaffirmation agreement, the client will be legally responsible for the deficiency between the loan balance as of the time the car was repossessed, together with the costs of repossession (tow - truck, storage, etc.) and the sales price of the vehicle when the vehicle is sold at an auction.

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.

If a clients signs a first mortgage reaffirmation agreement and later defaults on the mortgage loan, the lender will still foreclose, but assuming that the lender forecloses by advertisement (and almost all mortgages are foreclosed this way in Minnesota), the debtor need not worry about having to pay a deficiency if the home sells for less than the mortgage balance.

For example, to keep a car the debtor may choose to redeem the debt (pay the secured creditor the value of the collateral in exchange for a release by the creditor of their lien) or reaffirm the debt (sign a reaffirmation agreement and continue to make car paymentFor example, to keep a car the debtor may choose to redeem the debt (pay the secured creditor the value of the collateral in exchange for a release by the creditor of their lien) or reaffirm the debt (sign a reaffirmation agreement and continue to make car paymentfor a release by the creditor of their lien) or reaffirm the debt (sign a reaffirmation agreement and continue to make car payments).

Reaffirm your car debt If you have an auto loan for which you are still making payments on, be sure that you sign a reaffirmation agreement with the auto lender.

Once the reaffirmation agreement is signed, you are back on the hook for the loan.

You, therefore, have waived your legal rights for bankruptcy protection by signing off on a reaffirmation agreement.

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.

All reaffirmation agreements must be signed by a bankruptcy court representative to be legal and binding if a debtor has filed for bankruptcy.

Reaffirmation agreements are not required in bankruptcy and are totally voluntary, and there may be certain circumstances when they make sense, such as in the case of a borrower who has inadvertently received federal Title IV loan funds in excess of an annual or aggregate loan limit and wishes to regain eligibility for additional Title IV aid.