I have a question regarding bankruptcy and the surrender of property.

Back in 2003 my wife and I refinanced our mobile home with Chase.
In June of 2004 we had to file bankruptcy, and received a discharge from the court. Soon after the discharge we received a notification that 21st mortgage would now be servicing the loan. It is in a mobile home park so we do not own the land it sits on.

We stayed with the mobile home because housing prices were to high for us to purchase a "real" house, but since our income has gone up and housing prices have crashed where we live, we can now afford to purchase a real home. It was my understanding from the bankruptcy lawyer that unless we reaffirm the loan, than it is only a good faith agreement to continue paying for it, but I want to verify if that is correct, so I don't get any surprises down the road.

The loan on the mobile home does not show on our credit report, so I am leaning towards believing we can walk away from it.
Current loan and house value are both around $26,000

Thanks for any insight you might have.

[QUOTE=neonmagician]I have a question regarding bankruptcy and the surrender of property.

Back in 2003 my wife and I refinanced our mobile home with Chase.
In June of 2004 we had to file bankruptcy, and received a discharge from the court. Soon after the discharge we received a notification that 21st mortgage would now be servicing the loan. It is in a mobile home park so we do not own the land it sits on.

We stayed with the mobile home because housing prices were to high for us to purchase a "real" house, but since our income has gone up and housing prices have crashed where we live, we can now afford to purchase a real home. It was my understanding from the bankruptcy lawyer that unless we reaffirm the loan, than it is only a good faith agreement to continue paying for it, but I want to verify if that is correct, so I don't get any surprises down the road.

QUOTE]
Are you saying that you have made no payments on the home since filing Chapter 7? Unless there is a "reaffirmation by course of conduct" (your staying in the home and making payments) in your jurisdiction, it is my understanding that you can walk away if you have not signed a reaffirmation agreement. (Have you been making land rental payments during this time?)

We have been making the normal monthly payment, but have never signed any kind of new agreement.

I believe your attorney is correct. But making payments would be considered re-affirmation.

Quote:

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Originally Posted by neonmagician

We have been making the normal monthly payment, but have never signed any kind of new agreement.

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Sounds to me as though you can walk away from this one; the servicing company should have demanded a reaffirmation agreement. You may need to check with your attorney as to the current law in your jurisdiction.

George may be right or I may be right. Really does depend on how things are done in your jurisdiction. My feeling that a written affirmation would not be required. That your continuing payments would act as a re-affirmation. So consult the atty who handled your bankruptcy.