A trend is starting to emerge regarding a post- bankruptcy mortgage practice.\u00a0 In the recession, many mortgage companies adopted a different approach to re-affirming a mortgage in bankruptcy.\u00a0 Traditional thinking required the debtor to \u201cre-affirm\u201d his mortgage after bankruptcy so he could keep his house.\u00a0 In the recession, it became somewhat common for the mortgage company not to\u00a0require\u00a0re-affirmation.\u00a0 This actually helped the debtor because, if the debtor stumbled and fell later, they would not be personally liable on the mortgage.\u00a0 The mortgage company would simply look to its lien on the house.<\/p>\n
A downside of this process is starting to show up.\u00a0 Mortgage companies who do not have their debt re-affirmed will not report payments made by the debtor after the bankruptcy.\u00a0 The debtor could go for several years making all their payments, being current on the mortgage, and then go to re-finance, only to find that the credit report shows no payment history.<\/p>\n
We are starting to see that crop up.\u00a0 Therefore, if you are going through bankruptcy, you should weigh the options of being free from the debt vs. re-building of your credit.\u00a0 One solution to this problem is, in the course of the re-finance; produce your mortgage payments to prove you have kept your payments current even though they are not being reported.\u00a0 For further questions, contact\u00a0Douglas Johnston<\/a>,\u00a0John Cowan\u00a0<\/a>orSophia Tippmann.<\/p>\n","protected":false},"excerpt":{"rendered":" A trend is starting to emerge regarding a post- bankruptcy mortgage practice. In the recession, many mortgage companies adopted a different approach to re-affirming a mortgage in bankruptcy.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[18],"tags":[],"yoast_head":"\n