Reaffirming

[Donald Baker]

I have a form to reaffirm my mortgage, even after ch7, we're showing negative $500 on paper,will that be a problem? I was wondering if anything will actually change when reaffirming, such as interest rate or payment etc. Thanks

[BKTango]

Your interest rate and payment should remain the same UNLESS you negotiate now with the creditor for better terms (you have to be realistic though). You can only negotiate or even try to get better terms before you sign that agreement, once it's signed it's too late to try anything. Also I'm concerned that even after filing the ch7 (discharging your debts) you show a negative $500. That can be considered on the high side for a negative, and you may have to answer to the court as to whether or not reaffirming is even in your best interest and not an undo hardship.

[SinkingFast]

I have a form to reaffirm my mortgage, even after ch7, we're showing negative $500 on paper,will that be a problem? I was wondering if anything will actually change when reaffirming, such as interest rate or payment etc. Thanks

If you don't reaffirm, the terms of the original contract still hold. Same payment, same interest rate, same terms.

BKTango makes a couple of good points.

Being negative with the mortgage is serious. If you reaffirm, there's no way to walk if you cannot pay.

Right now, you're in a position to renegotiate the terms of your mortgage. If you are on an adjustable with a rate change coming, you can negotiate with the Lender to change that. The thing you have working in your favor right now is the overall housing market. Foreclosures are at the highest rate in recent history.

Sign the Reaffirmation and you loose your bargaining power.

[Donald Baker]

I think I will talk to the lawyer about not signing it, I have no real equity and wouldn't mind getting out of here. It used to be a great neigborhood, but there is to many trailors around now, and there has been 2 meth labs busted this year with in 3 miles of my house. Not the best place to raise the boys.

[newgirl]

My atty advised me not to reaffirm. He said its not in my best interest and as long as I stay current (i was never late) I wont have any problems.
This makes me nervous but I'm going to trust my lawyer on this one

[alittle2late]

I on the otherhand have signed 2 reaffirmation agreements. Since they both are in my best interest due to the interest is 3% and less then 3 years left on the loans and are not upside down on either. Only sign if it is in your best interest and listen to your Attorney as he/she is on your side?

[manglicmot]

My atty advised me not to reaffirm. He said its not in my best interest and as long as I stay current (i was never late) I wont have any problems.
This makes me nervous but I'm going to trust my lawyer on this one

My attorney the same thing, he advises most of his C7 clients with car loans just to ride through. Apparently ride-throughs are really not allowed since the new laws were written and he is fighting with Ford Credit over it right now. He told me that if he loses with Ford I will have to come in and do a re-affirmation.

[NYCountry]

My attorney the same thing, he advises most of his C7 clients with car loans just to ride through. Apparently ride-throughs are really not allowed since the new laws were written and he is fighting with Ford Credit over it right now. He told me that if he loses with Ford I will have to come in and do a re-affirmation.

Reaffirmations are voluntary. I signed a couple of papers stating that I understood this. What's up with this?

[SinkingFast]

Reaffirmations are voluntary. I signed a couple of papers stating that I understood this. What's up with this?

New Law,............. You have to Reaffirm, Redeem, or Surrender. There is no official "Ride Thru" anymore.

People have been doing a form of "Ride Thru" tho. They sign their BK Petition stating and Intent to Reaffirm and then never follow thru on the actual Reaffirmation paperwork.

Technically, if you do not Redeem or Reaffirm during the BK process, the Lender can force you to Surrender the underlying asset. The house, the car, the computer. You name the property secured by the loan.

Most don't or,........ Should I say,......... Haven't so far. But they can.

[NYCountry]

Right. So he can redeem, correct? and not be forced to reaffirm?

[SinkingFast]

Yes.

But to Redeem, he has to pay the mortgage in full.

Which probably means he'd have to find another Lender willing to underwrite another mortgage.

Unless he has a rich Uncle who'd be willing to pay cash for the house for him.

[Donald Baker]

No rich uncles here............attorney supposed to get back with me tommorrow, he was in court today. Thanks this board is very helpful at such a stressful time.

[BKTango]

One thing about the reaffirmations....sometimes it's the lender who doesn't want or "recognize" (in a sense care) if you do or do not sign a reaffirmation. And if you do MAKE DOUBLE SURE the lender itself did their part. We actually did sign a reaffirmatin and also of course signed our statement of intent to reaffirm. We had a 6 page document that both of us plus our lawyer signed and sent it back to the lender's attornies per their request to file....they never filed it and didn't tell me about it until one month past my discharge. Also we had a buyout so we have a new lender now if it wasn't all confusing enough. But our lawyer assured me, not to bother reopening the case to reaffirm and the new lender as done that as well. I have been paying in person and thankful I have that option to have a receipt to show proof of payment each month. So far everything has been fine. If you do not sign make sure you make all of your payments in person, by auto bank draft or send payment return receipt requested so you have receipts and a paper trail showing you have been paying on time.