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Do I have to reaffirm my mortgage?

After you declare bankruptcy in Oregon, you still have to have a place to live, and the costs of moving may be considerable, particularly with the soaring rent prices and lack of rental homes available in many portions of the state. That does not necessarily mean you want to remain tied to your mortgage and your home forever, though. With some time to put money back after your debts are discharged, you may be looking forward to finding a new place that suits your needs better.

The good news, according to SFGate.com, is that you may be able to stay in your home indefinitely without retaining the obligation of your mortgage. This generally will only apply to you if you are not currently in the process of foreclosure, and you have not fallen behind in your payments. You must also continue to make your monthly payment on time. If you can meet these requirements, your lender will not foreclose on you and auction off the house.

If you stop making the payments when you file for bankruptcy or afterward, you are not responsible for the balance of the mortgage because the lender still holds the mortgage property title lien. However, foreclosure then becomes an option for the lender, and you should probably prepare to move. If you are already in foreclosure, the automatic stay of the bankruptcy will provide you with some relief by stalling the process briefly, but your time in the home is limited. This information is general in nature and should not be considered legal advice.

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