question about reaffirming in a ch 7

[cantwait]

What does it mean to ride it out? Say we want to reaffirm but don't sign the papers, we keep paying because we want to keep it. Say the bankruptcy goes through, 3 years later we can't keep up with it, what happens? I ask because we rent out our old house that we moved from 3 years ago. We are current because rent pays mortgage. We want to try to sell, but if we can't and the renter moves or quits paying and we don't get another renter, we can't pay the mortgage. Just wondering

[AngelinaCatHub]

You have it about right. If you pay through and they allow it (why would they not in this market?), then you can't pay it, you can notify them and give them the keys. They of course will have to go through the process of reposession. 'Hub

[cantwait]

Thanks ACH ! (hope you don't mind the abbreveation) And I hope it won't ever come to that. We'd like to sell, even though at best we'd only make about $5,000. But for someone who doesn't have any savings as of yet, we wouldn't want to just throw it away if we don't have to.

[cantwait]

One more question, when you say they would repossess it, does that mean it would still be considered a foreclosure, or would it be called a discharge from bankruptcy, and does it really matter? (Although as far as the embarrassment factor foreclosures are in the local paper here as well as the county on -line court dockets, but they don't print bankruptcies)

[hamletsdead]

If you couldn't keep up the payments later on after your BK, the bank would have to commence the typical foreclosure process, but at the end of the day you'd walk with no liability because your BK discharged any personal obligation you might have had on the loan. If you re-affirm, and then can't pay later, you are screwed, my friend, since the bank can now come after you for the deficiency. Why reaffirm? It really doesn't help your credit score that much, and you risk getting into financial hot water all over again.

[cantwait]

Thanks all!