Legal Question in Credit and Debt Law in Georgia

Asking a specific question...here's the question -

Filed Chapter 7 June 2012, mortgage was included although they never sent a reaffirmation agreement and my attorney advised against signing ANY reaffirms. I've paid the mortgage each and every month and still am. However, with the fact that the mortgage being part of the bk, the bank is not reporting anything to the bureaus. My question is, were I to stop paying for the mortgage, would the bank report that to the agencies? Also, no payments on the house would inevitably lead to foreclosure, would that foreclose be reported to the bureaus?

Asked on 4/25/13, 3:43 am

1 Answer from Attorneys

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Your bankruptcy attorney was smart. You should not sign any reaffirmation agreements.

You keep paying the mortgage if you want to keep the house. My understanding is that your payments are not being reported even if timely. Conversely, if you gave back the house it also would not be reported. This is because the debt/obligation was already discharged in bankruptcy.

If you ever find yourself unable to pay for the house, you simply send the keys back to the mortgage company and tell them its their problem. While they still have to go through the foreclosure process, they will not be able to sue you for either a deficiency if the home sells for less than what is owed or sue you on the mortgage note.

This is a question you should ask your bankruptcy attorney - I am not one. Scott Riddle and Glen Ashman, here at Law Guru, are more familiar with this as they handle GA bankruptcy. Perhaps you could ask one of them or they will step in here and correct me if I am wrong.

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4/25/13, 12:04 pm

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