310.376.9865
As part of my day I read a bankruptcy attorney’s listserve, where bankruptcy attorneys across the United States post questions.
One bankruptcy attorney from Indiana posted a letter sent to his client by the bank holding the mortgage on his home. If the client did not immediately reaffirm his debt, the bank was going to take steps to foreclose on the home.
Locally, here in California, I am aware that banks, will not allow payments at branches, will not report payments to credit reporting agencies, can’t pay on line unless the debtor reaffirms his loan, the bank will not refinance unless there is a reaffirmation, we have never ran across this problem.
I don’t believe this will become an issue in California, as California is a non-judicial state, meaning 99.9% of all foreclosure are done without court involvement. However, as far as I know, the bank can not foreclose because you didn’t sign a reaffirmation agreement.
While it may be possible for a bank to bring action to try to get the debtor to sign a reaffirmation (previous post), and do not see much chance of success, I don’t think a bank would bring such an action in California.
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Los Angeles/Orange County Chapter 7 Bankruptcy Attorney- A Debt Relief Agency.
- Law Offices MJ Mann Bankruptcy Attorney
- 2706 Artesia Blvd, Suite BK
- Redondo Beach, CA 90278
- 310.376.9865
