Not Reaffirming Mortgage

[pak511]

We are currently in the "60 day club" waiting for discharge on 3/9/09. My question is in regards to not reaffirming our 1st and 2nd mortgage. From what I have read here it seems to be the best way to go.

My marital situation isn't the most stable at this time and there maybe a possibilty of divorce in the furture. Currently our house is mortgaged for more than it is worth. Since we didn't reaffirm the loans what would happen if a divorce happened and we wanted to walk away from the house. Since it wasn't reaffirmed would there be a foreclosure on my credit rating or just the charge off from the bankruptcy?

Thanks

[StartingOver08]

There would be a foreclosure, but it would not show (should not show) on your credit report. In fact, the only thing that should show is IIB and zero balance. You would be free to walk from your house anytime after discharge.

[jgordo52]

my question is what if you're filing a 7, are current when you file, and fall a little behind. As in payment is due on the 1st and you end up paying it on the 20th?

[StartingOver08]

You are in your automatic stay period. If you plan to keep your house, you need to continue to make the payments. If you plan to leave your house, stop making the payments.

[jgordo52]

I'm keeping my house, but I just wanted to make sure if I'm 20 days late they won't try to file for relief of stay or anything of that nature.