Reaffirmation Agreement On Mortgage
In California, you can`t be held responsible for the deficit of a first mortgage anyway. But in New York as elsewhere, without bankruptcy, the lender could sue you for default. Confirmation is rarely a good idea, and for a mortgage, it can be downright stupid. The main reason a creditor wants confirmation is the maintenance of the debtor`s right to sue for the notice of default. But under California law, a creditor who closes a first mortgage on a building is almost never entitled to a default judgment. When it applies the much more frequent extrajudicial enforcement procedure, it clearly has no right to make an adverse judgment. If he uses a court foreclosure, there is no right to default if the house itself is used and the proceeds of the loan have been used to purchase the house (as is the case with most first mortgages). Confirmation prevented Jean from closing his house. However, if the lender is unable to make the mortgage payments under the new conditions, the lender will take possession of its home and initiate foreclosure proceedings. In Chapter 7 bankruptcy proceedings, a confirmation agreement is used if the filer wishes to continue to repay one or more of his or her debts. This is usually used for secured debts such as car loans or home loans, where the person wishes to keep the property.
If, for the reason mentioned above, a mortgage is not confirmed in bankruptcy, you would have the problems mentioned in the first sentence of this blog post: your mortgage lender could stop sending you his monthly statements and no longer report their payment to the credit bureaus. (For more information on dealing with these two specific problems, see the links in this first sentence.) You need to understand what a confirmation agreement is. Here`s what I know. Some borrowers want to continue to pay their loans without going through the formal confirmation process. However, there are some benefits to the borrower of confirmation. When a borrower confirms a debt, this is seen by lending agencies that register while the person regularly makes payments on time. If you are seriously anxious to confirm the mortgage, be prepared to ask yourself some difficult questions in your quest, to convince the judge that it is a good idea to do so.