Lawyer says "bad idea" to reaffirm mortgage

[niteflytes]

I emailed my lawyer asking about the reaffirmation paperwork for my mortgage and car loans since I never heard anything at all from his office about it even after calling numerous times.

I received the following reply from him today. " I do not approve reaffirmation agreements on mortgages. It is a bad idea." No explanation as to why it's a bad idea though. I replied and asked him for more info. I wish they had told me this to begin with or taken 5 minutes to return my calls and tell me this.

Why would it be a "bad idea" to reaffirm a mortgage?

I guess I'm not like most of his clients. I do research and ask lots of questions and persist until I get answers. I find it hard to believe that so many people go into BK not knowing a thing about how it works, trust their lawyer 100% and come out the other end just as ignorant about the process as when they started.

niteflytes

[BKTango]

I posted early and updated my situation going on with my mortgage reaffirmation. I can say to you that reaffirming allows you to go back to regular billing like nothing happened, IF you should ever be late they would work with you and not just try to yank your home out from under you, and they should (but most don't) go back to reposting your payments to the cra's. Now on the flip side, since I am now thrown to that side, if you do not reaffirm, they will not report your payments to the cra's. Legally according to the letter of the bk law, they can take their porperty at anytime....this is the big one...as most don't, my lender told me that this morning, as long as we stay current, and even if we have to be late as long as we contact them first they will leave us alone, however should we default on the loan...they will begin foreclosure proceedings. Most states, districts, and creditors still allow you to just keep making your payments on time and they will leave you alone. Good thing to being on this side, should you ever for any reason need to leave your home (illness, job loss etc.) you can walk away and owe nothing.

Our lawyer really didn't want us to reaffirm at all in fact most don't, but I kept pushing it from day one, and way before our creditors meeting we signed all the paperwork. But thanks to the lawyers for the mortgage company they didn't get it filed with the court and we just now found out this week, which is too late to do anything other than reopen the case for it. Who knows maybe it was a blessing. Honestly I don't think anyone really knows anymore what is supposed to be done, it's right there in the bk code, but trustee's, lawyer's, lender's, courts, and states seem to be doing their own thing.

[niteflytes]

Thanks for the reply. My lawyer emailed back and told me to make an appt to talk to him and he'd explain. I'll post what he has to say after I meet with him.