.jpg)
Reaffirmation of Mortgage Loans
Nate,
See 11 USC 524(6)(B).
No Code requirementfor court approval ofreaffirmation of consumer debt secured by real property where debtor not represented by an attorney during the negotiation of the agreement.
Lender could have presented a reaffirmation agreement todebtor anddebtor from a loan modification programafter the lender neglected to
Law Office of Peter M. Lively * Personal Financial Law Center I
11268 Washington Boulevard, Suite 203, Culver City, California 90230-4647
Telephone: (310) 391-2400* Toll Free: (800) 307-3328 * Fax: (310) 391-2462
________________________________
To: "cdcbaa@yahoogroups.com"
Cc: "ntdberneman@verizon.net"
Sent: Thursday, September 12, 2013 10:18 PM
Subject: [cdcbaa] Reaffirmation of Mortgage Loans
I have a past client who left me a message today about reaffirming her mortgage loans on both her properties. Debtor received her Discharge in Chapter 7 in 2012. The message stated that she was told by her mortgage companies that in order to get Assistance for a program for a loan modification she needs to Reaffirm her mortgage loans since her husband is now unemployed. (The loans are with Seterus, BofA and Nationstar ).
1. Since the case is discharged, this can't happen.
2. The Judge's don't like to reaffirm mortgage loans while the case is even active unless there was a significant benefit.
Has anyone had this issue come up and what did you tell your clients?
Thank you,
Nate Berneman
The post was migrated from Yahoo.
Thank you. I will look up the case.
Sent from my iPhone: Nathan Berneman
On Sep 13, 2013, at 10:46 AM, wrote:
> I'm not sure the outcome, but this issue was recently before Judge Mund. Her tentative is reproduced below:
>
> Tuesday, June 04, 2013
>
> 10:00 AM
>
> 1:11-11123 Alfonso Rios and Eloise Rios Chapter 7
>
> #49.00 Motion by Debtor to Reopen Chapter 7 Case
>
> Docket 16
>
> - NONE LISTED -
>
> Courtroom Deputy:
>
> This chapter 7 no asset case was filed on 1/28/11. Discharge was entered on
>
> 4/29/11 and the case was closed on 5/29/11. No reaffirmation agreements
>
> were filed prior to that time. The schedules show that at the time of filing the
>
> petition the Debtors owned a single family residence at 13618 Gain St.,
>
> Pacoima that was worth $267,000 and that the liens as to that property were
>
> as follows:
>
> 1st TD to Wells Fargo with $161,000 owing
>
> 2d TD to Bank of America with $117,000 owing
>
> 3d TD to Bank of America with $10,000 owing
>
> On May 13, 2013 Debtors filed this motion to reopen "for the purposes of>
> permitting Debtors to refinance with Wells Fargo Bank, N.A. ("Creditor") and
>
> thereafter to file a reaffirmation agreement with the court." [doc. 16, 1:25-27]
>
> The motion goes on to state that the "Debtors have been informed by the
>
> Creditor that the Creditor will not refinance Debtors' first deed of trust due to
>
> the fact that Debtors' bankruptcy case is now closed and the original deed of
>
> trust was no reaffirmed. Debtors must reaffirm their original deed of trust
>
> through the bankruptcy court before Creditor would consider refinancing
>
> Debtors' first deed of trust." [doc. 16, 3:19-23] Debtors also note that "[w]
>
> ithout the case being reopened, Debtors will have no ability to refinance their
>
> Real Property, primary residence. This will have an adverse effect on their
>
> ability to re-establish their creditor and finances post bankruptcy
>
> discharge." [doc. 16, 4:24-27, emphasis in the original]
>
> proposed ruling
>
> The initial issue concerns why Wells Fargo is apparently insisting that the
>
> Debtor reaffirm the first trust deed before it will refinance. Is this merely sothat it is comfortable that the refinance [or possibly the loan modification] will
>
> not be seen as a violation of the discharge injunction? If so, the Court is
>
> willing to enter an order to that effect.
>
> Or is it so that Wells Fargo will have additional rights under the refinanced
>
> loan than it would otherwise have due to the effect of the discharge on the
>
> original/current loan?
>
> I have no declaration or other evidence from Wells Fargo as to its purpose. If
>
> the Debtor can provide such a declaration, I will consider it. Otherwise, the
>
> Debtor is to provide me with the name, email address, and phone number of>
> the person at Wells Fargo who can be contacted at the time of the hearing. I
>
> strongly suggest that Wells Fargo be asked to arrange that this person be in
>
> higher management with the knowledge and authority to deal with this or that
>
> s/he be an attorney for Wells Fargo who is fully cognizant of the details of this
>
> loan and the purpose for which the reaffirmation agreement is being
>
> requested.
>
>
>
> - Casey Nelson
>
>
>
> --- In cdcbaa@yahoogroups.com, wrote:
>
> This is happening all the time now withal banks. I am getting a lot of emails and calls from clients about this.
>
> Sent from my Stella Havkin's iPad
>
> On Sep 12, 2013, at 10:18 PM, Nathan Berneman wrote:
>
>>
>> I have a past client who left me a message today about reaffirming her mortgage loans on both her properties. Debtor received her Discharge in Chapter 7 in 2012. The message stated that she was told by her mortgage companies that in order to get Assistance for a program for a loan modification she needs to Reaffirm her mortgage loans since her husband is now unemployed. (The loans are with Seterus, BofA and Nationstar ).
>>
>> 1. Since the case is discharged, this can't happen.
>> 2. The Judge's don't like to reaffirm mortgage loans while the case is even active unless there was a significant benefit.
>>
>> Has anyone had this issue come up and what did you tell your clients?
>>
>> Thank you,
>>
>> Nate Berneman
>
>
The post was migrated from Yahoo.
I've had these calls; I suspect I'm not the only one. It's from people who
are told that their mean/horrible/incompetent attorney failed to let them
reaffirm their home which is costing them the opportunity to get the BEST
MORTGAGE EVER. If only we "let" them reaffirm that house that's underwater
by a quarter-million dollars, they'd be getting a mortgage that cost only
$500 a month and had eleventy thousand dollars shaved off the principle.
Brainwashed with this background, they call us, their former best friend
ever and recipient of Starbucks gift card of thanks, irate for costing them
the Golden Opportunity of an almost-free house.
A quick education usually makes them your BFF again against the greedy
multinational bank that wants to stick them with a deficiency balance. But
I'm generally not eager to cooperate with their attempts to saddle
themselves with a post-discharge debt.
Just my $0.02.
Hale
_____
The post was migrated from Yahoo.
I dont know of any judge that will sign off on mortgage reaffirmations, and
I wont sign off off on them for my clients.
I suppose you could reopen the case and go through the procedures for
getting the reaffirmation heard. Maybe the attempt to get the
reaffirmation approved would satisfy the lender, but cya with your client
by making it clear what the odds are.
On Sep 13, 2013 10:22 AM, "Nathan Berneman"
wrote:
> **
>
>
> I have a past client who left me a message today about reaffirming her
> mortgage loans on both her properties. Debtor received her Discharge in
> Chapter 7 in 2012. The message stated that she was told by her mortgage
> companies that in order to get Assistance for a program for a loan
> modification she needs to Reaffirm her mortgage loans since her husband is
> now unemployed. (The loans are with Seterus, BofA and Nationstar ).
>
> 1. Since the case is discharged, this can't happen.
> 2. The Judge's don't like to reaffirm mortgage loans while the case is
> even active unless there was a significant benefit.
>
> Has anyone had this issue come up and what did you tell your clients?
>
> Thank you,
>
> Nate Berneman
>
>
>
>
I dont know of any judge that will sign off on mortgage reaffirmations, and I wont sign off off on them for my clients.
I suppose you could reopen the case and go through the procedures for getting the reaffirmation heard. Maybe the attempt to get the reaffirmation approved would satisfy the lender, but cya with your client by making it clear what the odds are.
On Sep 13, 2013 10:22 AM, "Nathan Berneman" <nathanberneman@yahoo.com> wrote:
I have a past client who left me a message today about reaffirming her mortgage loans on both her properties. Debtor received her Discharge in Chapter 7 in 2012. The message stated that she was told by her mortgage companies that in order to get Assistance for a program for a loan modification she needs to Reaffirm her mortgage loans since her husband is now unemployed. (The loans are with Seterus, BofA and Nationstar ).
The post was migrated from Yahoo.
This is happening all the time now withal banks. I am getting a lot of emails and calls from clients about this.
Sent from my Stella Havkin's iPad
On Sep 12, 2013, at 10:18 PM, Nathan Berneman wrote:
> I have a past client who left me a message today about reaffirming her mortgage loans on both her properties. Debtor received her Discharge in Chapter 7 in 2012. The message stated that she was told by her mortgage companies that in order to get Assistance for a program for a loan modification she needs to Reaffirm her mortgage loans since her husband is now unemployed. (The loans are with Seterus, BofA and Nationstar ).
>
> 1. Since the case is discharged, this can't happen.
> 2. The Judge's don't like to reaffirm mortgage loans while the case is even active unless there was a significant benefit.
>
> Has anyone had this issue come up and what did you tell your clients?
>
> Thank you,
>
> Nate Berneman
>
>
>
The post was migrated from Yahoo.
I have a past client who left me a message today about reaffirming her mortgage loans on both her properties. Debtor received her Discharge in Chapter 7 in 2012. The message stated that she was told by her mortgage companies that in order to get Assistance for a program for a loan modification she needs to Reaffirm her mortgage loans since her husband is now unemployed. (The loans are with Seterus, BofA and Nationstar ).
1. Since the case is discharged, this can't happen.
2. The Judge's don't like to reaffirm mortgage loans while the case is even active unless there was a significant benefit.
Has anyone had this issue come up and what did you tell your clients?
Thank you,
Nate Berneman
The post was migrated from Yahoo.