2013 April 11 by jesse
I, Jesse Aschenberg, had a great time speaking at the monthly meeting of the Mile High Chapter of the Women’s Council of Realtors. Thanks for having me!
2013 April 9 by jesse
As a Denver bankruptcy lawyer, I have been receiving multiple calls from clients who filed bankruptcy a few years ago who are now eligible to re-finance their current mortgage or purchase a home.
The mortgage lenders and brokers frequently ask my clients “Did you reaffirm the mortgage?”
Wells Fargo, in particular, has been offering our past clients refinancing of their mortgage only to deny it later because a reaffirmation agreement was not filed in the bankruptcy case.
Wells Fargo tells our clients that they’ll approve them for a re-finance if they will file a reaffirmation agreement in their two-year-old chapter 7 bankruptcy case. Unfortunately, this is not an option. Once the bankruptcy discharge has been issued by the court, the court cannot approve a reaffirmation agreement.
Our solution: If you cannot re-finance with the mortgage lender you had when your bankruptcy was filed, apply with a different lender.
Our contacts at First Option Lending have recently told us that an individual who filed chapter 7 over 2 years ago is eligible to re-finance their mortgage now if they have not missed any mortgage payments and otherwise qualify. You don’t need a reaffirmation agreement to re-finance if your have a stellar payment history and your income is steady and verifiable.
It is common practice for bankruptcy attorneys to advise their clients to not reaffirm their mortgages and other debts. A Reaffirmation Agreement is an agreement made between the debtor (our client) and a creditor (like Wells Fargo) to agree to pay a debt that would otherwise be discharged (forgiven) by the bankruptcy.
The agreement is a court-approved new post-bankruptcy contract with the creditor. It gives back the lender the right to sue our clients (including wage and bank garnishment) if they default in the future.
How can a bankruptcy attorney advise his client to put himself or herself in that situation? Especially today when an astounding number of homes are underwater and the economy is so uncertain.
The benefits of signing the reaffirmation agreement are outweighed by the risks.
2011 March 24 by Staff
According to Consumer Bankruptcy News, nearly 3 million properties in the U.S. received foreclosure papers during 2010. This is a 2 percent increase from 2009 and a 23 percent increase from 2008.”Total properties receiving foreclosure filings would have easily exceeded 3 million in 2010 had it not been for the fourth quarter drop in foreclosure activity – triggered primarily by the continuing controversy surrounding foreclosure documentation and procedures that prompted many major lenders to temporarily halt some foreclosure proceedings,” said James J. Saccacio, chief executive officer of RealtyTrac. “Even so, 2010 foreclosure activity still hit a record high for our report, and many of the foreclosure proceedings that were stopped in late 2010 – which we estimate may be as high as a quarter million – will likely be re-started and add to the numbers in early 2011.”Source: Consumer Bankruptcy News, February 24, 2011 Continue reading »