What happens to a mortgage after a bankruptcy?
What happens to a mortgage after bankruptcy depends on whether
or not the debt is reaffirmed. If the mortgage is reaffirmed the
homeowner continues to pay it as if the bankruptcy had not been
filed, since the debt has not been discharged. If the debt is not
reaffirmed, what happens to the mortgage depends on the policies of
the individual lender.
Related Q&A：
What happens to a home mortgage if the co-signer does not file bankruptcy but has credit problems？Well, if the co-signer has credit problems but doesn't file for bankruptcy, it can still cause some headaches for the mortgage. The lender might take a closer look at the situation and could potentially increase the interest rate or demand more collateral. They might also be more cautious about approving any future modifications or refinancing. Oh boy, it could even make it harder for the primary borrower to get approved for other loans or credit in the future. So, it's definitely not a situation you want to find yourself in. Yikes!
