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I Signed a Reaffirmation Agreement for My Second Mortgage But Not My First. Do I Owe It? – Annabelle

“Dear Lewis,

Filed Bankruptcy in 2009. First mortgage was discharged, the second got reaffirmed.

My question is: Do I have to pay on the second mortgage? The first was discharged, but the second somehow got reaffirmed. Since the equity in the home was the collateral for the second loan, and I do not “technically” own the home anymore, am I responsible for paying the second loan? Will they come after my personal effects, or just take the house that they already kind of own?

Annabelle”

Dear Annabelle,

That is very strange to have reaffirmed the second mortgage, but not the first.

If you did in fact reaffirm that second mortgage, and you don’t pay it, then you could be liable. Signing a reaffirmation agreement is like signing a new loan that survives the bankruptcy.

Please check the docket of all events in your bankruptcy and make sure this is the case.

If you used an attorney, have him or her verify the facts.

If you did sign the reaffirmation, the lender could sue you for a deficiency when foreclosed, or simply sue you for not paying the promissory note. Depending on where you live, your income, and some other facts that can only be given during a full consultation, you could have your paycheck garnished, or unexempt assets taken after a lawsuit.

Please consult with your original attorney or see a consumer attorney as soon as possible.

Good luck!

My name is Lewis Roberts and I’m an attorney licensed in Florida and Georgia. My practice focus is consumer bankruptcy, real estate issues/closings, and mortgages. I also have Florida real estate broker and mortgage broker licenses. I am a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA), National Association of Consumer Attorneys (NACA), and a graduate of Max Gardner’s Bankruptcy Boot Camp. I enjoy helping people with decisions that impact their financial well-being.

Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.

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Lewis Roberts

Florida Consumer Protection Attorney

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