Question about reaffirming mortgages in FL?

[flnybk]

We only passed the means test for Chapter 7 because of the house. Am I required to sign Reaffirmation papers in FL for the 1st, 2nd and 3rd mortgages? Will we still qualify for Chapter 7 BK if we don't sign papers? We intend to keep paying on the house mortgages. But our house is upside down over $100,000.

What happens if we short sale and I signed a reaffirmation? i just don't want to screwed myself over by signing anything, especially if I don't have to by Florida law.

Is it possible to only sign the 1st and 2nd and not 3rd?

[StartingOver08]

You don't need to sign any of the reaffirmations to keep your house. You only need to keep paying on time and select on your Statement of Intentions that you intend to reaffirm.

If something comes up and you have to surrender later - it is far better for you to not have that reaffirmation signed. (None of the reaffirmations signed)

Even if you decided to sign the reaffirmation on the first, there is no way in the world you should sign for the second or the third - especially being upside down $100k. And you really should think long and hard about signing a reaff on the first. JMO.

[flnybk]

In our paperwork to file, we filled out our intent to reaffirm mortgages and cars. We filed in April and our 341 meeting is May. We just got papers from one of the cars to sign re-affirm papers. My husband wants to sign that.

So if they send papers for the mortgages then we don't have to sign them? I was trying to find out for Florida law if we still qualify with not signing them.

[StartingOver08]

Is the car a good deal for you?

I reaffirmed one of my vehicles and surrendered the other - the one I reaffirmed I was able to get the payments reduced about $100/mth and now the tradeline is reporting as paid as agreed/never late (because I never was late with the payment even during the Bk - but I did negotiate a 'skipped' payment in the auto stay period and on the reaffirmation). So if the terms are good for you, then reaffirm as long as you are sure it will not be a hardship.

As to the house, you can use the monthly payment in your filing like you have - but I would not sign a reaffirmation on the mortgages at all. Not in this real estate market. If you follow one of the threads with some of the others - they are trying to negotiate the JR liens (2nd and 3rd mtgs) after the Ch 7 discharge. Check out Relief's postings and some of the others. Don't box yourself into reaffirming the mtgs.

[flnybk]

THANKS! I won't sign the mortgages reaffirmation papers.

One car is good, the other is upside down. The upside down car is my main vehicle for work, kids etc...The lawyer didn't want us to reaffirm it, but we are worried about not having money to buy a 2nd car after the BK is dismissed.

[StartingOver08]

THANKS! I won't sign the mortgages reaffirmation papers.

One car is good, the other is upside down. The upside down car is my main vehicle for work, kids etc...The lawyer didn't want us to reaffirm it, but we are worried about not having money to buy a 2nd car after the BK is dismissed.

Two things here: 1) you want a DISCHARGE, not a dismissed BK (big difference) in the discharge the debt is gone - in a dismissal you end up with all the debt + a record of the filing

2) If the car is upside down, don't reaffirm your car.

a) You can still just make the payments on the car (ride through) unless it is Ford financing - they are brutal.
b) If you don't reaffirm the car, you can save for another vehicle - or go get financing on a car that is not so upside down. There are lots of threads on here for that. Reaffirming an upside down car will hurt you in the long run because you are taking on that extra debt. Use your fresh start wisely.

[flnybk]

oops, I meant discharged.


I need to go look for posts on financing a car after BK. It should be discharged 60 days after 341 meeting, yes?

[StartingOver08]

Yep - we seem to be running on time here in FL for the discharge.