Wells Fargo Reaffirmation Agreement
Wells Fargo and other lenders that have this policy ignore bankruptcy law that governs assertion and certain government default laws. SO, WHAT`S MY POINT? Your lender is not your friend when it comes to confirmation agreements. If you speak to your lawyer, you will receive good legal advice to determine the law and your rights. Talk to people about www.makinghomeaffordable.gov. Talk to other lenders. This is a legal area that is changing every day. If you don`t fall into the trap of accepting a “no” today, tomorrow will always be a “no.” Your bankruptcy discharge eliminates personal liability and the creditor`s ability to sue you against anything other than the return of collateral. If you sign a confirmation agreement, you give back that advantage without getting anything in return. What steps do I need to take to achieve this if I need the agreement? Since confirmation agreements rarely benefit the debtor, I generally advise clients not to sign them. Before you make this important decision, be sure to discuss the issue with your lawyer. Refinancing – probably not. You would say to the bank, “I am not sure where we stand in relation to our agreement, but please give me better terms.” In the event of bankruptcy, a confirmation agreement waives the discharge that a debtor can receive for an eligible debt. In other words, if you claim a debt, you promise to pay the debts when you have asked for insolvency relief.
I am a bankruptcy paralegal in Georgia, and I can tell you from my personal experience that neither the Bank of American nor Wells Fargo will send a pro-active confirmation agreement to our office. It can literally take hours to navigate their phone trees to get to the right service, and once I`ve sent the agreement, I usually have to check four to five times. It is absolutely frustrating to have a customer who wants to sign an agreement just to get the deal after the discharge. In Georgia, you cannot open a file in which a confirmation agreement is reached if the agreement was executed before the discharge entry. I would like to add that customers who do not confirm their primary mortgage are usually blown up on their credit reports because mortgages are declared offloaded at the end. This is also the case when they make each payment without notice. However, there is a good thing; The first submission indicating that a debtor wishes to confirm usually leads the bank to ask us for permission to discuss credit changes with the debtor; even if they refused to discuss it with them before the filing. BoA was wrong. There are cases where it is established that it is the creditor`s duty to prepare a confirmation agreement. I don`t know anyone who says the debtor is responsible.
BoA may not have sent you a confirmation agreement because it knew it wasn`t necessary. Many lenders don`t even bother to rearmer real estate. This is generally good for the debtor. Even if your home is foreclosed, you may be forced to pay a default. When a lender sells a home in a forced sale, the remaining balance in the account after the product is applied is classified as a default. If you sign a confirmation agreement, the lender can get a default judgment indicating that you owe that money. Without a confirmation agreement, the lender cannot make you responsible for the balance of defects. If a homeowner has declared bankruptcy for many, there is a lender on the affected house.