What Is A Mortgage Reaffirmation Agreement

This must be done before debt relief, which in a Chapter 7 case is 60 days after the meeting of creditors or approximately 3 months after the filing of the case. After that, it is too late. After weighing the pros and cons of a confirming agreement, your choice is whether you want to sign an agreement with your mortgage lender. If you don`t sign a stand-by agreement, it`s unlikely that a company will initiate foreclosure as long as you stay up to date with your mortgage payments and don`t violate other terms of the mortgage letter, such as. B the maintenance of home insurance and the payment of property taxes. Most mortgage companies want to avoid foreclosure if possible. However, there are some drawbacks to confirming a mortgage. The biggest drawback is that you can be held responsible for the entire mortgage balance if you default on your payments. The re-recognition prevented John from seeing his house sold at auction by force. However, if he does not make the mortgage payments under the new conditions, the lender will take possession of his house and start a foreclosure procedure. If your home is summer, you may have to pay for a deficiency. When a lender sells a home at a foreclosure auction, any balance that remains in the account after using the product is called a default.

If you sign a confirming agreement, the lender may receive a default judgment stating that you owe that money. Without a re-agreement, the lender can`t blame you for the deficit balance. .