Legal Question in Bankruptcy in North Carolina

Your lawyer should have explained this in detail. You are required to indicate in your Statement of Intention whether or not you intended to keep the real estate. You are required to reaffirm the debt to guarantee that the mortgage holder doesn't foreclose. Here is why: If you intended to surrender the home, then you would not reaffirm (new promise to pay the debt). The discharge would make the debt not collectible by the secured party, however the lien would remain and the lender could proceed to foreclosure once the case is closed or after they secured permission from the court. It could be, that you did not reaffirm, intended to stay in the property and continue to make payments. The lender may ignore any right it may have because you failed to reaffirm and continue to collect the payments. The lender may even mark the account current. You may be able to go on in the same manner as if you did not file. If you did not reaffirm and you fell into default or the lender elected to foreclose, then the lender could not secure a deficiency judgment for the difference between the foreclosure price and the debt. If you fell into default after you reaffirmed the debt the lender could obtain and collect a deficiency judgment. In all events, the probable reason your credit report shows discharge of the mortgage is because that is the basic result of the entry of the discharge order. The agency doesn't reflect the fact that you reaffirmed. It is too complicated for them to do so anyway, because you could revoke reaffirmation within a limited time window. Thus reaffirmations are not reported. This doesn't change what your relationship is with your lender. Finally, as indicated earlier in this answer, the lender keeps the collateral position it had before, that is, it still has the lien. If you do not make the payments you cannot keep the property and it will probably be sold. If you are nervous because you did not reaffirm and want to keep the property, tell your lawyer to ask for the case to be held open or reopened to allow filing of the reaffirmation agreement.