My chapter 7 was discharged in 2009. We did not reaffirm the first or second. We continued making payments on the first but not the second. I attempted numerous times to reach a settlement on the second, but they would not even respond. A couple of years ago the first mortgage holder modified my loan to a reasonable payment. However, we have applied for and been approved for a mortgage on another house. Our house is still underwater by a pretty good amount, but with prices going up, we figure it is just a matter of time before the second mortgage holder forecloses. And with this our credit would be shot again, and we would be unable to by another house for a few years.
My question is, if we let the current home be foreclosed, will we be on the hook for the difference between what is owed and what it sells for? By modifying the first mortgage, was this in effect, reaffirming the first mortgage? Although we have kept up to date with the payments on the first, the loan and payments do not show up on my credit report. Does this mean it was not technically reaffirmed? I just do not want to let this house go, and then end up on the hook for the difference. Our house is still underwater by a pretty good amount, but with prices going up, we figure it is just a matter of time before the second mortgage holder forecloses.
My question is, if we let the current home be foreclosed, will we be on the hook for the difference between what is owed and what it sells for? By modifying the first mortgage, was this in effect, reaffirming the first mortgage? Although we have kept up to date with the payments on the first, the loan and payments do not show up on my credit report. Does this mean it was not technically reaffirmed? I just do not want to let this house go, and then end up on the hook for the difference. Our house is still underwater by a pretty good amount, but with prices going up, we figure it is just a matter of time before the second mortgage holder forecloses.
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