Legal Question in Bankruptcy in Massachusetts

Should I sign reaffirm to get fees removed from my mortgage?

I recently filed Ch. 7, but took care to place a stay on both my auto & home loans. I have never been late paying either of these loans, they are automatically deducted from my checking account each month.

My mortgagee filed a motion for me to sign a reaffirmation agreement. They also added their attorney fees to my mortgage (at 11.74%) My atty got the mortgagee's atty to agree to remove the fees from my mortgage if I signed the reaffirm. I received the reaffirm agreement & it was incorrect (much higher than what I owe). It was sent back to the bank's atty - after a month I received another 'incorrect' reaffirmation agreement (as I had made another loan pymt). While waiting for a correct version - my bankruptcy was officially discharged & more atty fees were added to my mortgage (a total of $2006.00) so far.

My atty now suggests I should 'eat' the fees & not sign the reaffirm. He says he has not spoke w/the bank's atty. I don't know if this is in my best interest & I am seeking a 2nd opinion. Please advise and thank you.


Asked on 1/20/09, 9:33 am

1 Answer from Attorneys
Richard Ravosa Law Offices of Richard S. Ravosa

Re: Should I sign reaffirm to get fees removed from my mortgage?

With a discharge the debt is technically discharged, however, most secured creditors allow you to keep your house as long as you pay the mortgage. Your creditors should not be taking out money out of your account. Perhaps a modification is what is called for. A reaffirmation agreement is not mandatory it an agreement a Debtor choose to enter voluntarily. A reaffirmation agreement needs to be filed with the court prior to your case closing. It may be too late to get this done in time. You still may be able to renegoiate with the mortgage company, you have nothing to lose but time.

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Answered on 1/20/09, 9:48 am


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