Legal Question in Bankruptcy in California

It appears from your zip code that your case was filed in the Northern District of California. Why is that important? It is extremely important because local practice varies from District to District, even in the same state, and most of my cases are filed in the Central and Southern Districts of California. As such, you may want to hear from an attorney in Northern California before relying upon it because my experience is not with your court District.

First, here in Central District of California, it is not common practice to reaffirm mortgage debts. I advise my clients (if it makes sense to keep the house in the first place) to simply continue making all payments on the house (property taxes, insurance, HOA dues and mortgage) on time after the date of the filing of their case. This also, however, presumes that they were current on the mortgage when they filed the case.

If you were not current with the loan when you filed, you have to make some arrangements with the lender to become current on the mortgage pretty quickly or they will file a motion seeking Court permission to foreclose the property. They cannot own your home until they foreclose it through legal process, so no, they do not own your home simply because you didn't reaffirm the debt. Reaffirmation is unique to each debt - if you reaffirm a car loan, it does not reaffirm all other debts, even if the car loan is with someone you hold a credit car with also.

Finally, yes, if you want to keep the home, you must continue making mortgage payments, and must pay it in full within the term of the loan, or they can foreclose.

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