To reaffirm a debt in bankruptcy you must ask your creditor to send you reaffirmation paperwork, consisting of a Reaffirmation Cover Sheet, a Reaffirmation Agreement, and a Motion For Approval of Reaffirmation Agreement. The creditor should fill in most or its entire portion of these papers before sending you the documents. Here are Andy Miofskyâ€™s Five Easy Steps for you to complete the debtor portion:
In Illinois, property is sold at foreclosure by one of several methods, by judicial sale in court, or by a court appointed receiver, trustee or sheriff, usually in the courthouse or by agreement of the parties. The borrower has 7 months after the lawsuit was filed or 3 months after a foreclosure judgment was entered by the court to redeem the property by paying a specified amount to the plaintiff/mortgage holder. If the property is not redeemed within the redemption period, the foreclosure sale transfers all interest in the property to the buyer.
A story from California shows what can happen after a bank takes property.
If you have an FHA loan, the lender is supposed to comply with FHA regulations. We have always maintained that if the lender fails to comply with FHA regulations if you default on a mortgage, you have a defense to the foreclosure.
The Illinois Appellate Court...