1st and 2nd mortgage reaffirmation

[njtrucker]

I may have to file bankruptcy due to a bad business decision, but my wife wouldnt be filing. Our house is in both our names, can she assume the debt and keep the house?

Also, we have a home equity line that for some reason is only in my name and she is not on the line, can i reaffirm that so the house is not forclosed on?

[chad9162]

If you have equity in the house I don't think you can just transfer the house into your wife's name since technically you'd be trying to hide an asset (even though) you are not. On the 2nd, as long as you're current then yes you can reaffirm. Also I think community property states have different laws on this.

[njtrucker]

I was told once that if there are two debtors and one files bankruptcy, that the second and assume the debt. With my house, we are both on the mortgage and i will be the only one filing. My question is, can she solely take the debt or can i also reaffirm the mortgage. With gettting rid of my other debts, we can afford to pay both the 1st and 2nd mortgage

[StartingOver08]

You can reaffirm the mortgages if you want to reaffirm. Hopefully the bank will cooperate with you.

[njtrucker]

If i am current, is there any reason the bank would not work with me? Wouldnt the rather get payments than have to foreclose?

[StartingOver08]

Oh, I just mean the banks sometimes drag their feet on the reaffirmations - that's all. You are safe anyway because your wife is not filing. As long as the payment is made, you are fine.

You probably just need to stay on top of the bank to get the reaffirmation - then make sure it is actually filed by the court. I assume you have equity in the house and are looking to stay for the long term.

[njtrucker]

Thanks. I actually am probably a negative value between the 1st and 2nd mortgage and todays market.

We plan no staying long term, so i am hoping the banks work with me. The 1st and 2nd are with two different banks.