Creditor Won't Reaffirm

[JollyGG]

JollyGG and Diviaruba,

My attorney told me the reaffirmation agreement was between the creditor and me and that they could reaffirm a loan even after discharge. Is this a false statement?

Thanks,

GST

It may be possible after discharge. However, your original post indicates that your case is closed. In order to file something with the bankruptcy court regarding your case (a reafirmation) there has to be an open case. As yours is closed you would need to reopen the bankruptcy to do so. If you attempted to do that the judge would be unlikely to agree to reopening the bankruptcy for a reafimation (there is nothing in it for the court).

[deafbroke]

This is just my opinion but you said you can't afford the increase in interest rate and it is going to keep going up so why waste money staying in a home you most likely will lose in a year or two? You've been through enough with the bankruptcy and you deserve a fresh start and the house is keeping you grounded in the past. The only thing I would do at this point is tell wells fargo that the reaffirmation was signed and sent in by your attorney and you have proof (copies, with dates) and if they do not honor the terms of the reaffirmation agreement you will stop paying on house and let it go to foreclosure. I think they DID get the agreement but felt they can make more money off you with the adjustable rate increases and are playing you. Don't fall for it. Give them a choice, take it or leave it. You can always make new memories at a new home in a couple years.

DB

[Nodebtnow]

Need some advice..Filed Ch.7 on 1/31/08. 341 on 3/10/08. and discharged on 5/19/08. no asset case. included mortgage 1st and 2nd and also car loan to re-affirm. 2nd mortgage through Citimortgage was only 1 to send re-affirm papers. my 1st mortgage through Countrywide never sent re-affirm papers and I have a ARM with them that adjusts in Oct 2008 which can be no more then 1.50% on the 1st adjust and can go no more than 13.25% total through the life of the loan. I'm pretty much tapped out in equity due to recent housing slump so refiancing is probably out of the ?. However, is it possible or does anyone know if I call the bankruptcy department for countrywide and ask them to send re-affirm papers to include a fixed rate for the life of the loan. I can handle the payments when it adjusts since there's a cap but don't know for how long. I would prefer to keep my current rate of 6.25 throughout the life of the loan if possible. I don't know whether telling the that i would have to foreclose if the rate changes would do any good. I have never missed a payment with either mortgage company and would like to keep it that way. Any help on what to do would be appreciated..

[diviaruba]

You're in a tough spot because you re-affirmed the second mortgage with Citi. It makes it hard to threaten to walk on the first if Countrywide doesn't play ball. Even if you bailed on the house, you're still on the hook with the second mortgage.

Go ahead and re-read this whole post, and you'll see why a re-aff is such serious business. Like the original poster, you're too late to negotiate a re-affirmation with Countrywide inside your bankruptcy, with the oversight of the court. You're kind of on your own now, and I'm not sure what kind of leverage you can bring to bear on a renegotiation of your terms.

[JollyGG]

You're in a tough spot because you re-affirmed the second mortgage with Citi. It makes it hard to threaten to walk on the first if Countrywide doesn't play ball. Even if you bailed on the house, you're still on the hook with the second mortgage.

Go ahead and re-read this whole post, and you'll see why a re-aff is such serious business. Like the original poster, you're too late to negotiate a re-affirmation with Countrywide inside your bankruptcy, with the oversight of the court. You're kind of on your own now, and I'm not sure what kind of leverage you can bring to bear on a renegotiation of your terms.

Actually, you can still recind your reafirmation with Citi depending on when you signed it.

It might be an option to look at if you don't plan to reafirm the first and think that an adjustable rate may force you to give the house up in the future.

[sisterfunkhaus]

I understand that people get emotional attachments to their homes, but you can find a new home. Trust me on this.

Emotions are what gets us into this in the BK mess in the first place. Paying such a huge interest rate on a house is going to keep you from getting your finances back into the best shape they can be. I would sell or let it go and rent. If they think you are going to default, they may come back with a better rate for you. Then again, they may not. I would just let go of the house and find a new home.

[happy_ira]

I desperately want to keep our house (it's not just a house, it's our home), so I will continue to make the payments.

Good news is...I have a couple of email addresses at Wells Fargo and also the names of their Corporate Officers. I'm going to begin an email and phone call campaign designed to get their attention and reaffirm my mortgage at the fixed rate. I don't know if I'll be successful at all, but I figure it's worth a try, right? I'm going to pursue this until they tire of hearing from me and reaffirm just to get me off their backs. Anyone think it's worth it?

GST - What was the outcome of all this from a few months ago? Reason I ask is because my first mortgage is with Wells Fargo (it is fixed, not ARM) for a home purchase a couple years ago. Everyone is basically suggesting NOT to reaffirm it and to simply stay "current" on payments. Did Wells bother you to reaffirm in advance "or else we'll take your home"? (Though, as most peopel agree, I cannto imagine why they would want the home in this terrible housing market.) Thoughts on Wells?