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Should I reaffirm my mortgage after bankruptcy- letter of affirmation

I recieved the following question:

I have been working with my mortgage company since 6/2009 on home modification. In 9/2009 I received a letter stating I was approved for the modification and should receive the solution package in 5-7 bus. days. I never received it and after hundreds of calls to the Mortgage company I received a letter on 12/17/09 stating I was denied and in default of over 12,000.00 & facing foreclosure. I started Chapter 7 Bankruptcy and now mortgage company is telling me they can complete the modification if my lawyer sends them a letter of affirmation. I have no idea what this means or what to do.


Your situation is very common with many of the leading servicing and lending companies.  They are overwhelmed and undermotivated to actually do the things that will keep our giant gerbil wheel of an economy running and keep people in their homes making payments.

To short sale? To give the keys back? To re-obligate your self to the debt and do a deal with the devil? I can assist 216-324-6637

By asking you to sign a letter of affirmation they want you to resign on the mortgage and make your self fully liable again.  Your mortgage company knows that after you file Chapter 7 bankruptcy they will not be able to collect against you for any losses.  So to try to keep you their slave for life no matter what happens they want you to reaffirm and they are using the promise of possibly being able to in your home to lure you into what will probably be the same situation except worst because you have now all ready played your Chapter 7 bankruptcy card and you will have no other ace in the whole for debt relief.

Check with your attorney.  I can’t give you legal advice.  But most likely you should have your attorney contact the mortgage company and let them know that if they want to accept payment right now they can but if they want you to resign on the loan and get back in the same situation they were in they can take a long hike and get nothing.  You are in the position of power as you are no longer liable for the loan.  The mortgage company has the choice of either taking payments now or foreclosing and sustaining a massive loss which you will have no obligation to repay.

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