[CLBS] Reaffirming primary residence

[Katie Dullea]

I've had clients take copies of all post-petition payments to a new
potential lender and they were still denied because it wasn't on their
credit report because they didn't reaffirm.  I only recommend reaffirming
home loans when there's a lot of equity and then only if the debtors are
going to need good credit in the future.

-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Ryan F
Sent: Thursday, September 05, 2013 11:50 AM
To: Cam Phillips
Cc: Bankruptcy list
Subject: Re: [CLBS] Reaffirming primary residence

@ Cameron Phillips, you can't force it, but a workaround is for the client
to pay by check so that they can prove payments have been made on time every
month.  It usually satisfies a future underwriters inquiry.

@Patricia, people on the NACBA boards have recommended filling out a
reaffirmation but not completing the attorney's certification so that the
client has to go to a hearing.  They should explain to the judge that they
didn't want to reaff, and their attorney wouldn't sign it, but lender is
requiring it to consider a loan mod.  The should ask the judge to deny the
reaff, but to approve the lender to consider the debtor for a loan mod that
does not change the dischargeability of the loan.  Then there's no
malpractice, and if the judge denies the reaffirmation,, the lender should
proceed with the  loan mod regardless.  Loan mods aren't supposed to put the
borrower back on the hook after BK, per treasury guidelines.

Ryan Farnsworth
Avery Law
770 S. Woodruff
Idaho Falls, ID 83401
208.524.3020




On Thu, Sep 5, 2013 at 12:39 PM, Cam Phillips
<camphillipslaw at gmail.com>wrote:

> We do not advise our clients to reaffirm mortgage debt.  It can't be 
> required.
>
> But has anyone found a way to force mortgage creditors to report the 
> payments they are getting?  It is very disappointing for a client to 
> go out and apply for a mortgage, post bk,  only to find that there's 
> no pmnt history showing up on the credit reports.
>
> Cameron Phillips
> Attorney at Law
> 924 Sherman Ave.
> Coeur d' Alene, Idaho 83814
> 208 667 5437
>
> On Sep 5, 2013, at 11:28 AM, Patricia Evans <evans_trish at msn.com> wrote:
>
> > I was to a seminar and this issue came up and it was said it was 
> > almost
> malpractice to reaffirm the primary residence since their are remedies 
> in state court if the debtor later doesn't pay. (Washington State
seminar).
> Lately I have had banks demanding reaffirms. What are your thoughts 
> and  what are you doing? THÀNKS!
> >
> > Patricia Evans
> > Attorney at Law
> > POB 1016
> > 155 Main Street Suite #2
> > Orofino Idaho 83544
> > (208) 791-6794
> >
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> >
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