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A lot of clients come to our firm and ask whether or not they can reaffirm their mortgage. Super technically, you can only reaffirm as to personality, which is a fancy way of saying assets other than land. A mortgage is a lien on land, so it can’t be reaffirmed, right? Well, maybe.

When you get a mortgage, you also get a note, which is your “personal” obligation to pay the mortgage (see the word “person” coming back?), so some lenders and very few courts (like one in Texas), take the position that if the note isn’t reaffirmed, the mortgage does not continue. This is wrong in the eyes of almost every judge, but the bank is the bank. So, what should you do? Now you are making on time payments and you want future lenders to know that, but the mortgage company is not reporting it so now you can’t get credit on your credit report for the on time payments.

You should know that there is yet another law that comes into play. This is known as the fair credit reporting act. All you need to know is that you can put a 100 word statement into your credit report that all future credit grantors will get along with your report. Now you can put a statement into your credit report asking that any creditor grantor contact you and you will supply them with evidence of your in time mortgage payments (statements from the current lender, payment history, etc.).

If you are in need of experienced legal counsel in New Jersey, please contact Tomes Law Firm, PC and we will be happy to assist you.