Does signing a forbearance agreement on a mortgage loan that was not reaffirmed in Chapter 7 bankruptcy constitute reaffirmation of the loan?
UPDATED: May 10, 2012
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Does signing a forbearance agreement on a mortgage loan that was not reaffirmed in Chapter 7 bankruptcy constitute reaffirmation of the loan?
I filed bankruptcy 5 years ago and did not reaffirm my mortgage but continued to pay it and live in the house. Now, I am underemployed and my wife is unemployed. Our mortgage company offered a forbearance agreement that would lower our payments for one year. After that period, if our financial situation changes, they say they will reevaluate and possibly offer other options. If we sign this forbearance agreement, are we reaffirming our loan?
Asked on May 10, 2012 under Bankruptcy Law, Ohio
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
Whether or not signing the forbearance agreement that you have written about reaffirms the loan for the home depends upon what is specifically stated in the forbearance agreement. As such, you need to carefully read this agreement as to what it states and your obligations as to it.
If you do not understand the "legal" terms that may be in it, I suggest that you consult with a real estate attorney to explain the document to you and your obligations if you sign it.
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