Reaffirming Mortgages (Revisiting)
Posted: Sat May 16, 2015 12:00 pm
Ok, interesting case, but Texas is an entirely different part of the universe. Notice the Judge added a whole lot of "creditor can" language to the opinion. The lawyers in Texas can point to the decision and tell creditors they are able to take those actions.
Would a Los Angeles Judge to write the same opinion?
Also, the judge just waxed over the question of creating a liability when there isn't one. What part of California law is changed by signing a reaffirmation? Would that change the loan from purchase money?
Nonpurchase money, seconds, and equity loans, have personal liability.
In those cases the Texas case would not apply, keep in mind, Texas is different.
d
Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voice
> On May 15, 2015, at 11:37 PM, Michael Avanesian michael@avanesianlaw.com [cdcbaa] wrote:
>
> Well.. check out this beauty:
>
> "The court disapproves the reaffirmation agreement between the debtors and JP Morgan Chase Bank, N.A., because the debt in question is a home equity loan, which is, under Texas law, a nonrecourse obligation. Thus, there is nothing to "discharge" and so nothing to reaffirm. Reaffirmation agreements of such loans are inappropriate ... so as to impose a liability on the debtor, a liability for which the debtor, under nonbankruptcy law, clearly has no liability."
>
> https://scholar.google.com/scholar_case ... as_sdt2006
>
>
> Sincerely,
>
> Michael Avanesian, Esq.
> Simon Resnik Hayes, LLP
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>> On Fri, May 15, 2015 at 11:27 PM, Nicholas Gebelt ngebelt@gebeltlaw.com [cdcbaa] wrote:
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>> Dear Mark,
>>
>>
>>
>> If the debtor subsequently defaults, there could be a tax liability on cancelation of debt income.
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>>
>>
>> All the best,
>>
>>
>>
>> Nick
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>>
>> Nicholas Gebelt
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>> Nicholas Gebelt, Ph.D., J.D.
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>> Sent: Friday, May 15, 2015 11:11 PM
>> To: cdcbaa@yahoogroups.com
>> Subject: Re: [cdcbaa] Reaffirming Mortgages (Revisiting)
>>
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>>
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>> I guess I'm asking if there's any downside at all to reaffirming a mortgage in California. Clients want to be able to have the postpetition/post discharge payments reported as "on time" on credit reports.
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>> On 5/15/2015 8:48 PM, cdcbaa cdcbaamailbox@gmail.com [cdcbaa] wrote:
>>
>> Mark:
>>
>> Are you asking if preemption applies? No. A reaffirmation agreement would have to have specific language saying the loan becomes recourse for a court order in a Federal Court to preempt state law. I have never seen anything like that, and expect most judges would not sign such a reaff.
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>> d
>>
>> Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voice
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>>
>>
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>> On May 15, 2015, at 10:36 AM, 'Mark J. Markus' bklawr@yahoo.com [cdcbaa] wrote:
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>>
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>> I know there's been a lot posted on this topic, but I had a specific question:
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>> If a debtor reaffirms an otherwise non-recourse mortgage, does the reaffirmation convert that into a recourse loan?
>>
>>
>>
>> *************************
>> Mark J. Markus
>> Law Office of Mark J. Markus
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>> 11684 Ventura Blvd. PMB #403
>> Studio City, CA 91604-2652
>> (818)509-1173 (818)332-1180 (fax)
>> web: http://www.bklaw.com/
>> Certified Bankruptcy Law Specialist--The State Bar of California Board of Legal Specialization
>> This Firm is a Qualified Federal Debt Relief Agency
>> ________________________________________________
>> NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
>> IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.
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