Reaffirming Mortgages in Chapter 7


Reaffirming mortgages in Chapter 7 does not make sense, unless the mortgage company is changing the terms of the mortgage to the benefit of the debtor.

Recent cases support this this position, a Virginia court declined to approve an agreement when the debtor was current on a home worth more than the mortgage balance, noting that ride through still applies to mortgages.

An Ohio case shows the problem with reaffirming a mortgage, as the debtors surrendered the house without properly rescinding the reaffirmation agreement, and lost their house and were still personally liable for the mortgage.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Kurt OKeefe | Attorney Advertising

Written by:


Kurt OKeefe on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.