Sentences with phrase «reaffirmation agreements on»

Bankruptcy debtors should not sign reaffirmation agreements on second mortgage loans.

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.

So there's no good reason to sign a reaffirmation agreement on a first mortgage, and as a practical matter a bankruptcy debtor with a first mortgage will usually not see a reaffirmation agreement proposed.

In the case of seller bankruptcy, the seller should agree in the wrap agreement to execute a reaffirmation agreement on the wrapped debt (i.e., rather than surrendering the property to the lender seeking or otherwise seeking to avoid the debt).

Not exact matches

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.

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

On the other hand, if there is a reaffirmation agreement signed by the debtors and approved by the Bankruptcy Court, and the borrower / debtor makes timely payment, the loan will be reported to be in good standing.

Clients should understand that second mortgage companies can not foreclose on its mortgage simply because a bankruptcy debtor chooses not to sign a reaffirmation agreement.

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.

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.

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.

If you intend on surrendering your car, do not sign a reaffirmation agreement.

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.

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.

The reaffirmation agreement renews the debt after bankruptcy and puts you back on the hook to pay it.

That is why a lawyer has to sign off on the reaffirmation agreement.

The mortgage lender may offer to reduce the interest rate on the loan or otherwise make the terms more favorable in an effort to induce you to sign a Reaffirmation Agreement.

A reaffirmation agreement is an agreement whereby you're telling the lender and the bankruptcy court that you intend to assume responsibility of the account such as an auto loan or home mortgage by maintaining future payments on the account.