Legal Question in Bankruptcy in Missouri

does a home mortgage company have to refinance when you file for bankruptcy?


Asked on 2/15/11, 6:02 am

2 Answers from Attorneys

Anthony Smith LawSmith

No

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Answered on 2/15/11, 9:41 am
Alicia Beeler Villines Alicia Beeler Villines (sole practitioner)

No--a refinancing would involve a renegotiation of terms. The vast majority of people who want to keep their homes elect to reaffirm the debt. In this option, the payment terms remain unchanged.

A debtor is not required to reaffirm a secured debt. For people who are upside-down in their houses, an increasingly common option is to surrender the home. This conscious decision to "walk away" from the house and any resulting deficiency often creates the perception that the person has "lost" their home as a result of filing bankruptcy.

Occasionally it is possible to persuade a lender to renegotiate the mortgage terms if the person is going to file bankruptcy.

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Answered on 2/15/11, 12:50 pm


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