[CLBS] REAFFIRMATION AGREEMENT

Brit Groom groomlaw1 at yahoo.com
Wed Nov 15 15:57:50 MST 2017


I would like some thoughts on the enforceability of a filed reaffirmation agreement.
Here are the facts.   Debtor (client) filed a Chapter 7 in May 2017.  Debtor's are approached by the credit union holding the note and deed of trust on the Debtors residence to enter into a Reaffirmation Agreement.  After some discussion, the lender prepared the reaffirmation agreement.  All the terms in the Agreement seemed correct and in line with what had been previously discussed.  Debtors signed the agreement towards the end of June 2017.   In early September, Debtors converted to a Chapter 13 and moved from eastern Idaho to the Tri-Cities in Washington.  Debtor's decided to sell the residence in Idaho and within a couple of weeks received an offer in excess of the estimated value.   In preparation for closing, the title company requested a payoff from the home lender.  The lender responded with a payoff in excess of $50,000.00 more than the Reaffirmation Agreement.  When ask about the difference in amounts, the lender said it was an error on its part during the preparation of the Agreement.  The house is going to be sold with the difference between the two amounts being held in escrow until the issue can be resolved.
   Question= Who gets the 50K in dispute?  Can the lender get by with saying that it was simply an error and enforce the underlying loan amount, or does the filing of the Reaffirmation Agreement "reform" the loan docs to the terms of the Agreement.  There is no language in the agreement making it effective on any date other than when it was filed with the court in June. 
Any case law would be helpful.
Brit GroomAttorney at LawPhone: (208) 733-2999Fax: (888) 5974361The information in this email message may be privileged, confidential and protected from disclosure. If you are not the intended recipient, any dissemination or distribution is strictly prohibited. If you think you received this email message in error, please reply to the above referenced email address.


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