Why is Reaffirmation usually bad after bankruptcy?

Question

I know home loan lenders won't report good credit without a reaffirmation but why? If the home wasn't included in bk and/or your payments were never late......

Answer 1

They just want to literally "reaffirm" that your payments and/or situation are what you say they are. A bankruptcy basically tells a short story...your bills went into mass default. Although it could be for any number of legitimate reasons it still happens. You need to doubly prove everything until that negative mark is off your credit report.

Answer 2

All debts must be declared in a bankruptcy, the only way for a lender to continue to report is if you sign a reaffirmation agreement and even then you must call them and request that they continue to report.

Reaffirmation agreements are the best way people can re-establish their credit after a bankruptcy.

Answer 3

in order for it not to be included in a bk it must have an approved reafirmation agreement with the lender and the trustee