Chapter 13 and mortgage reaffirm

[Hope2009]

I filed chapter 13 last week. I did not want to reaffirm my mortgage but the my lawyer told me that I need to reaffirm the mortgage if I want to use high mortgage payment in my expense calculation

1st mortgage: $2100 MPY
2nd mortgage: $1000 MPY

Have anyone experienced this before?

We plan to walk away from our mortgage after few months into chapter 13 payment so we can have some extra money for saving. The house is breaking down and we don't have the money for repair.

Thank you all

[HHM]

We plan to walk away from our mortgage after few months into chapter 13 payment so we can have some extra money for saving.

Is this something you thought of, of did your attorney recommend this plan. The reason I ask is there is no way it will work. As soon as you walk away, the bank files a Motion to Lift Stay so they can foreclose, the trustee is now notified and will jump in and request modification of your plan to up your payment. No offense, but such a plan was unrealistic from the get go.

[justbroke]

We plan to walk away from our mortgage after few months into chapter 13 payment so we can have some extra money for saving. The house is breaking down and we don't have the money for repair.

This will not work at all. The Trustee will be notified as soon as the mortgage company files for their Motion for Relief from the Automatic Stay. As a matter of fact, depending on what District you're in, your home will probably be paid through the Trustee, meaning you can't avoid it anyhow.

There is no re-affirmation in a Chapter 13.

In any event, the Trustee will file a Motion to Modify Confirmed Plan to increase your payments.

[Hope2009]

Thank you all for your response

I was planing to walk away and rent but my lawyer suggested that I should reaffirm the mortgage so we can reduce the payment to the trustee. I was hopping to walk out and rent in a better school location, but it does seem to work after reading your post.

Thanks again

1st mortgage balance = 340K
2nd mortgage balance = 145K

House appraised = 495K

[Hope2009]

I may add.

I am not behind in any mortgage payment or credit card up to this point. The only debt I have not paid was the one from stock margin debit (Lehman brother bankruptcy). And it is not yet reported to credit agency. I am not sure if it makes any difference.

I have read few posts from this forum regarding how unwise to reaffirm the mortgage. However, my lawyer insist that in order for me to use mortgage payment as expense I have to reaffirm the mortgage.

I am not under water with the mortgage but just don't want to hang on to the payment so my kids suffer their medical needs as the result (braces)

Thank you all for your help as always