Here`s why you need a will and how you can protect what you enjoy most after you leave. If you do not validate the mortgage, your personal liability for the payment of the debt represented by the debt will be exempt in your bankruptcy case. However, your lender will retain a pledge right to your home through the mortgage. The company can close the mortgage and force a forced sale if you stop the payments. In some cases, the mortgage lender may agree to negotiate some of the terms of the loan to help you keep your home, but it is not legally obligated to do so. Under California law, a default judgment can generally be sued by mortgage lenders who hold second or third mortgages. This is why these lenders are much more interested in processing a confirmation agreement in bankruptcy court. However, there are some drawbacks to confirming a mortgage. The main drawback is that you can be held responsible for the entire mortgage balance if you are in a broadcast position during your payments. Instead, the debtor simply makes the monthly payments and stays at home.
Finally, if the mortgage debts are paid, his right to pledge would be released and the debtor would own the house freely and clearly. It is in the borrower`s best interest to go through legal proceedings, such as confirmation. B, when it comes to solving or managing financial obligations. If you have a home, you can keep it after you file for bankruptcy, especially since it is more difficult to get some kind of credit once you have gone bankrupt. If the court authorizes the agreement, it will be as if you have never filed a balance sheet for these debts and you will still be liable for all of that debt. Confirmation prevented Jean from closing his house. However, if the lender is unable to make the mortgage payments under the new conditions, the lender will take possession of its home and initiate foreclosure proceedings. If, for the reason mentioned above, a mortgage is not confirmed in bankruptcy, you would have the problems mentioned in the first sentence of this blog post: your mortgage lender could stop sending you his monthly statements and no longer report their payment to the credit bureaus. (For more information on dealing with these two specific problems, see the links in this first sentence.) Therefore, if the first mortgage is a mortgage that cannot lead to a default judgment thereafter, the mortgage lender will have little incentive to convince the debtor to confirm the mortgage debt in the event of bankruptcy, even if the debtor formally declares his intention to do so.