A reaffirmation agreement is an agreement made between a creditor and the debtor that waives discharge of a debt that would otherwise be discharged in bankruptcy. When a debtor does not reaffirm a mortgage loan, the lender will stop reporting the loan on the debtor’s credit report.

How many years does BK stay on credit report?

seven years
How Long Does Bankruptcy Stay on the Credit Report? The bankruptcy public record is deleted from the credit report either seven years or 10 years from the filing date of the bankruptcy, depending on the chapter you filed.

Do you have to reaffirm your mortgage in Chapter 7?

If you are current on your mortgage payments and file Chapter 7 bankruptcy, you may have been advised by your attorney not to reaffirm your mortgage during the process – or your lender may have refused to reaffirm. Mortgage lenders typically prefer you to reaffirm the debt because it gives them more leverage and options.

What happens if Lisa does not reaffirm her mortgage?

Although Lisa’s personal liability to pay the mortgage obligation is gone, her property is still subject to a lien in favor of the mortgage lender. Most mortgage obligations are comprised of two parts.

Is it better to reaffirm a mortgage or not?

Mortgage lenders typically prefer you to reaffirm the debt because it gives them more leverage and options. Often, though, it’s better for you not to reaffirm to give you more options. However, one of the downsides to not affirming is that mortgage companies will usually not report your post-bankruptcy mortgage payments to the three credit bureaus.

Is it illegal to not report payments on UN-reaffirmed mortgage?

The mortgage lender is not breaking any laws by not reporting payments on an un-reaffirmed mortgage. However, they would be in the wrong to dispute your requesting the bureau update based on your accurate self-reporting of payments.