To make you personally „return to the burden“ of the debt, the creditor will sometimes offer you better terms to encourage you to sign an RA and re-commit yourself personally to the debt. So you can try to negotiate with the creditor to improve the terms of your mortgage. You may be able to reduce the interest rate, reduce the balance owed, reduce the monthly payment or have your „current“ account declared. Therefore, if the first mortgage is a mortgage that cannot lead to a default judgment thereafter, the mortgage lender will have little incentive to convince the debtor to confirm the mortgage debt in the event of bankruptcy, even if the debtor formally declares his intention to do so. As a result, the lender does not prepare a confirmation agreement for the debtor`s signature, so as a general rule, none are filed in the bankruptcy court. The risk bank`s problems resulted from the absence of a valid confirmation agreement in the borrower`s Chapter 7 case and obtained two separate amendments to the agreements signed by the borrower after receiving discharge from the borrower. The chronology of events includes the following: Lapides had a venture loan secured by a 3rd position mortgage on Lapides` home. The loan was proven by a certificate issued on June 30, 2009. On August 11, 2009, Lapides applied to the Minnesota District Bankruptcy Court for Chapter 7 insolvency protection. During the bankruptcy proceedings, Venture and Lapides discussed the refinancing of all Lapides` debts and the parties even drafted and signed an agreement for debt reaffirmation.

However, Lapides bankruptcy attorney did not sign the confirmation agreement and was unable to seek bankruptcy court approval for the confirmation agreement. On November 16, 2009, Lapides received the discharge of personal debts. At that time, Venture still had a pawn on Lapides` residence, but Venture could not claim Lapides` personal debt recovery. First understand that you do NOT need to sign a debt guaranteed by real estate, for example at home.B. But, you could sign one if you can get greatly improved terms. You might be able to negotiate an advantageous change in the terms of your mortgage, including: Most claims are for debts with collateral – mainly vehicles and other personal property, although for homes, as described below. Creditors often need a confirmation agreement if you want to keep the guarantee. Not only do you want very strong assurances that you make the payments you promise, they also want to be able to sue you if you don`t. In particular, creditors want not only the right to recover collateral (which they can do without confirmation), but also to be at your mercy as long as the sale of collateral does not settle the debts (the „default judgment“).