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Reaffirmation to refinance/modification after discharge****
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Sent: Saturday, October 26, 2013 3:38 PM****
To: Bankruptcy law discussion list****
Subject: Reaffirmation to refinance/modification after discharge****
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If you have California clients facing requests to reaffirm after discharge
to either refinance or modify the loan, please know about the California
Monitor Program as a resource. I serve as Monitor at the request of
California Attorney General Kamala Harris. The California Monitor provides
assistance to homeowners and negotiation with the five mortgage companies
that signed the National Mortgage Settlement: BoA, WF, Chase, Citi, and
GMAC (now serviced by Ocwen) to ensure compliance with the Settlement,
including its bankruptcy-related servicing reforms. You can submit an issue
to us by email to: camonitor@doj.ca.gov. ****
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Of the 5 servicers listed above, we believe Wells Fargo is the main (only?)
institution refusing refinances unless the mortgage debt was reaffirmed in
the bankruptcy. (Doing it after the discharge basically doesn't work for a
host of legal reasons, and WF sees those issues but seems to continue to
"ask for"/"require" a reaffirmation at times. Wells Fargo has confirmed to
us, however, that loan modifications after discharge are available,
regardless of whether the debt was reaffirmed. ****
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California lawyers feel free to contact us if your clients are facing
difficulty in the loan modification process [before, during, after, w/o
regard to] the bankruptcy if the servicer is BoA, WF, Chase, Citi, or
formerly GMAC (now Ocwen). Unfortunately, we cannot help with other
servicers at this time. We are also particularly interested in problems
with Bank of America loans transferred to Nationstar (particularly honoring
trial modifications in process or converting to permanent modifications),
and whether motions for relief in chapter 13 cases are providing statements
of whether the debtor is in the loss mitigation process (this is a
settlement requirement). ****
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We also created some bankruptcy-specific National Mortgage Settlement
training documents, including one with the National Consumer Law Center
called "What Every Consumer Bankruptcy Attorney Needs to Know About the
National Mortgage Settlement.
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