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.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.