Is a lender legally obligated to notify the debtor if a reaffirmation is denied?
Question Details:
We signed reaffirmations for 2 vehicles with our lender (a Credit Union) after our Chapter 7. They only approved one but never notified us that they denied the second. We have been paying both loans religiously for 15 months since our bankruptcy, only to find out today that we cannot refinance the second loan because the CU will not release the title, and that we will never own the vehicle. I feel as if we have wasted 15 months of payments on a car that we could have surrendered long ago.
Did the reaffirmation agreement keep the terms of the loan the same or did it modify the loan with terms more favorable to you? If the terms were more favorable and the credit union accecpted the payments under a false pretense, you may be able to convence a Judge to enforce the terms of the unfiled reaffirmation agreement. You need to tell your lawyer everyting the credit union said or did that led you to belive the loan was modified and what you did in reliace on those statements. Silence can also be used against the credit union if you made a statement to the credit union that the debt was modified or reaffirmed and it did not immediately correct your misstatement.
