Reaffirmation docs sent late by Chase, after bankruptcy case already closed. Three years later...

[Eulogia]

I recently went to refinance, hoping to be a candidate for one of the government programs as we are underwater in our mortgage and I am working two jobs to keep us afloat. However, I found out that we never reaffirmed our mortgage with Chase. When I contacted my bankruptcy attorney, he told me that Chase sent the reaffirmation documents to him AFTER the bankruptcy had been filed (and possibly after it was closed?). He told me that he filed a Statement of Intention included with the bankruptcy petition, so Chase was on notice. However, for $660.00 he would file to re-open the bankrutcy and file the reaffirmation documents. So we scraped the money together and told him to go ahead. I contacted his office today to see what was going on, only to be told my his assistant that he has made several calls to Chase and is not getting anywhere. Did I have a contact there? He told me he doesn't want to reopen the case until he knows Chase will agree to the reaffirmation filing. He said in order for it to go through, both parties must agree. If he files it and Chase does not agree, he will have wasted my money. But he can't get ahold of anyone at Chase with whom he can discuss the issue.

Can anyone help me with this? I have no idea who I should contact. I know Chase has several bankruptcy departments.

Thank you very much for your help with this!

[Evan Bedard]

Did I have a contact there? He told me he doesn't want to reopen the case until he knows Chase will agree to the reaffirmation filing. He said in order for it to go through, both parties must agree. If he files it and Chase does not agree, he will have wasted my money. But he can't get ahold of anyone at Chase with whom he can discuss the issue.

Can anyone help me with this? I have no idea who I should contact. I know Chase has several bankruptcy departments.

I'm sorry to say but it sounds like your BK attorney may have dropped the ball. If it was in your full intentions to reaffirm the mortgage he could have done so a long time ago and I doubt he was sent the paperwork after the bankruptcy was dismissed. Here are some contacts he can use that should help.

Jamie Dimon Chairman & Ceo
Phone: 212-270-1111
Fax : 212-270-1121
E-Mail Address: jamie.dimon@jpmchase.com

Executive Team:
executive.office@chase.com

Penney Davis, Executive Resolution Team
904-462-2287
alsebre.davis@chase.com

[Cat Damiano]

Hi Eulogia,


Welcome to the forum and thank you for joining.........

Here is the direct number for Chase's Bankruptcy Department as that is the department that you will want to contact to try to resolve this issue.

1-866-243-5851

[Cathymarie]

I have a question... I never reaffirmed my mortgage with chase and they offered me a great principle reduction and not too bad interest rate for the life of the loan. I have not made a payment for 17 months and was going to walk until this offer. I talked with chase and I hope they are being honest lol. Basically I will make 3 trial payments and I am pre approved and no fees or paperwork. If I didn't reaffirm my loan then I don't even know how i can still have the opportunity to own it again. I am planning to sell in a few years and the house is finally valued at what it's worth. Chase assures me I can sell and they are just reducing the principle because it's cheaper than a foreclosure. My loan is going from $812,000 to $509,000

[Evan Bedard]

I have a question... I never reaffirmed my mortgage with chase and they offered me a great principle reduction and not too bad interest rate for the life of the loan. I have not made a payment for 17 months and was going to walk until this offer. I talked with chase and I hope they are being honest lol. Basically I will make 3 trial payments and I am pre approved and no fees or paperwork. If I didn't reaffirm my loan then I don't even know how i can still have the opportunity to own it again. I am planning to sell in a few years and the house is finally valued at what it's worth. Chase assures me I can sell and they are just reducing the principle because it's cheaper than a foreclosure. My loan is going from $812,000 to $509,000

That is amazing news Cathymarie, it sounds like you have been approved for the national mortgage settlement/DOJ settlement. This is basically a loan modification program and mortgages can still be modified even if they were never reaffirmed after BK. If it were me I would take the offer in a heartbeat, good luck and please keep us posted on your progress!

[Cathymarie]

Yes, I just mailed my first trial payment so we are taking this offer. Chase told me they evaluate areas where homes really were underwater and I was one of 10,000 homes they were offering this too. They waived all late fees and all taxes are paid to date and of course the huge principle reduction. Sounds too easy to be true but it's all in writing. Feels great to finally have this go my way since I had been stressing the last 2 years.

[Evan Bedard]

That is awesome you are one of the few who will receive such great success from the program. This settlement already seems to be providing much more assistance than others have in the past.

[Cathymarie]

I too never reaffirmed my loan and I was offered principle reduction from chase...why would you want to reaffirm your loan? Did they say you have to in order to get a modification?

[pennygram]

2 points here:

#1 - If you filed a chapter 7 and did not reaffirm then you no longer have a loan that you are obligated on - ie you are discharged from paying the debt. Doesn't mean there is no outstanding money owed on the house. To reaffirm is to get it approved in court within a certain time frame of the filing. If you did not get it reaffirmed then you need to speak to your BK attorney immediately. Some banks won't reaffirm and there is nothing you can do to make them accept it. Marking it in your bk filing that you intend to keep the home is also not good enough if the judge did not give an order to approve it. This is causing major problems for those that have simply filed a chapter 7 and been discharged with no reaffirmation approved by the court. I have seen people that can not get pay off statements to refinance or sell. And those staying can not get credit reporting.

What exactly are you modifying? A loan obligation that does not exist? And how does that play into the bk 7 discharge?

#2 - reopening a discharged bk is not so simple. when you reopen your bk you are opening the flood gates to all creditors and the trustee to come back and reassess your current situation. so if your situation has improved they get to petition the court for a second look at you. this could force you from the original 7 to a 13 or to a dismissal. be careful....

make sure you seek attorney advise on your situation.... my comments are strictly for discussion and chit chat

[Cathymarie]

That's what worries me...I didn't reaffirm my mortgage after chapter 7. My concern is that when it comes time to sell in a few years will I be able too? My bk attorney didn't seem worried and of course chase said yes that i could sell my home. But I still wonder. I am happy to accept this offer of principle reduction and stay in my home the next few years. Chase made it seem that since I wasn't foreclosed on that it's just reducing the loan amount. I would hate to make payments for a few years and not be able to sell. Any advise to where I could get an honest answer?

[pennygram]

That's what worries me...I didn't reaffirm my mortgage after chapter 7. My concern is that when it comes time to sell in a few years will I be able too? ...

I have not read of a case anywhere yet that addresses this issue. Your ownership is still left intact and you are paying off the lien on the property and the mortgage company has not exercised its right to foreclose.

I would suspect that in the coming years we will see what happens...

make sure you seek attorney advise on your situation.... my comments are strictly for discussion and chit chat