What is involved in reaffirming a mortgage?

Answer by  patti (29325)

How and if a mortgage is re-affirmed depends on the type of bankruptcy filed. If it is determined that the mortgage is eligible, the lender will determine the manner in which the process is carried out. Speak to your bankruptcy attorney as well as your lender for details with regard to what is required on either end.

Answer by  daltonbob (52)

Basically, you are going through the qualification process again. This assures the bank that you still have the ability to keep paying on your mortgage.

Answer by  Liz59 (10966)

Well, you have to make consistent mortgage payments if you are reaffirming the property. If you were not involved in this, you could walk away from the payment.

Answer by  PGR (74)

The lender will usually provide a document for you to sign to re-affirm the mortgage. Have it reviewed by your attorney

Answer by  justme6 (61)

If someone files bankruptcy, they can contact the company that holds the note to their home and agree to continue paying for and being responsible for the loan terms.

Answer by  Jason41 (229)

Reaffirming your mortgage is usually involved when you are filing bankruptcy. Your attorney will prepare a Reaffirmation Agreement which is basically when you and the mortgage company agree for you to continue paying your mortgage as you always have and you get to stay in your house. The mortgage will NOT be included in the bankruptcy.

Answer by  Mary (2095)

When you are reaffirming a mortgage it is usually because of a bankruptcy or because of a foreclosure. This is a refinance with the same or different company, but you have a much worse credit score. The terms are usually not very negotiable, because you are in a poor position. It requires that you sign papers like any other loan.