What are the benefits to sitting on a non-affirmed loan?

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What are the benefits to sitting on a non-affirmed loan?

About 2 years ago, my wife and I filed for bankruptcy. We had a very bad investment property that went south very quickly. We did not reaffirm our current home. We are trying to reestablish our credit without a car loan. I am concerned that in the future (3 to 5 years from now) my career could require us to move away from the area. With poor credit I’m concerned that we won’t be able to get a loan for a house. We are not upside down on our current loan. Other than the liability are there any repercussions to reaffirming or refinancing our home at this time?

Asked on March 11, 2013 under Bankruptcy Law, New Hampshire

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Was your bankruptcy discharged with out reaffirming the mortgage?  If the answer is yes then the debt was discharged as to you and your wife.  The fact that you continue to make payments does not change the fact that you are not personally liable for the debt.  Please speak with a bankruptcy attorney here and weigh the factors.  If you are able to pay the mortgage and the bak is going to offer you a great deal on refinancing the mortgage then it may be a good idea to reaffirm.  But I would not sign anything unless it is offered as a package so to speak.  Good luck.


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