Should we do this?

[treadingwater]

We have a very unique situation. We have a 1st and 2nd on our home with BB&T, but it's a construction to perm loan that has never been modified as the construction (remodeling) is still very incomplete. Had our 341 on Nov. 3rd, Trustee abandoned interest. Hired a separate atty. to negotiate a new mortgage and now, 45 days into the process, BBT wants a reaffirmation to even begin negotiating. My instincts is NO way. We have somewhat of an upper hand in that the house is not worth anywhere near the mortgage and is still very much a construction/remodeling mess. The atty. says, file the reaffirmation and then if you don't get the terms you want, rescind it -- she says the law gives you 60 days to rescind a reaffirmation. I feel if we sign the reaff. we give up any bargaining power. any thoughts...

[StartingOver08]

That is an interesting question.

The thing with mortgages is it is not uncommon for the mortgage company to take MONTHS (3 to 6) months to respond to modifications. So where does that leave you then? Unless you write somesort of deadline in your reaffirmation that the mortgage will be modified by x date. I don't even know if that is possible.

To me, and this is JMO, the fact that the lender will not consider the modification prior to the reaffirmation shows their true colors - they want you commited to the note prior to negotiations and that weakens your position.

[TEW]

I am a little foggy on the upper hand thing but I do have some questions. Can you afford the reaff. Remember the judge will have to approve it.
Why would you want to go through all this trouble for a half built upside down house?
If you don’t reaffirm can you finish it?

[danaf]

Don't sign the reaff. This way when your bk is discharged the lender might finally realize that you can walk away with no further penalty to yourselves. And then maybe they'd be willing to play ball.