Mortgage loan not reaffirmed in bankruptcy by lawyer error. This makes our credit rating even worse-now what?
We filed BK-7 in Kansas b4 the new laws took effect. Our attorney knew we wanted 2 reaffirm our home loan and we signed the Stmt of Intent form and it is noted in the creditor matrix. After we rcv’d a discharge we assumed our home loan was reaffirmed. WRONG! The ball got dropped by our attny and/or Wells Fargo so the loan got DISCHARGED in error. We’ve made our payments on this loan faithfully b4 and after our bankruptcy because we knew we wanted it reaffirmed and we thought it was reaffirmed for the last 2 years! Now Wells Fargo just shows our loan as DISCHARGED IN BK-7. We have filed 3 credit report disputes trying 2 get them 2 show that we’ve paid our pmts on time 2 help boost our credit rating and they keep side stepping our request. We are in the process of trying 2 sell this house and it is sitting on the not-so-good RE market. WHAT HAPPENS CREDIT WISE IF WE TELL WELLS FARGO THAT THEY CAN HAVE THEIR HOUSE BACK AND SELL IT THEMSELVES? Can our attny be held liable for this?!
The form that we signed is called a Statement of Intent form that showed our complete intention to reaffirm that debt. The lawyer basically admitted that they normally send a separate mailing regarding reaffirmation requests, and they did NOT do that in our case. And as far as us making sure that debt was reaffirmed before the discharge– we thought our lawyer took care of that for us. That is what we paid them to do. We put too much trust in them, obviously. It was indeed an error of judgement to trust them completely. You wouldn’t think you’d need to babysit your lawyer for crying out loud!
Will any sort of notes about a foreclosure be added to our credit reports if we were to walk away from our home loan, or would it just stay as “Discharged in BK-7”? We even hate to walk away from our home loan because we R trying 2 build our credit back up, but Wells Fargo refuses 2 work with us and show on our credit report that we’ve faithfully made our pmts on time b4 and after the BK!
2 repossessions, bankruptcy in 1997; late payments on mortgage and credit card in the last 12 months. one repossession has been cleared and the other one still have an outstanding balance.