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neonmagician · Mar 30, 2008, 08:01 AM

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.

George_1950 · Mar 31, 2008, 04:40 AM

[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?)

neonmagician · Mar 31, 2008, 06:42 AM

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

ScottGem · Mar 31, 2008, 06:43 AM

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

George_1950 · Mar 31, 2008, 07:20 AM

Originally Posted by neonmagician

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

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.

ScottGem · Mar 31, 2008, 07:47 AM

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.