No asset Chap 7. Mortgage reaffirm?

[liz417]

This MAY be only PARTIALLY correct. I'm not 100% sure if the same concept applies with mortgages (although I think it does), but with a vehicle you are protected by state laws after your BK is over, regardless if you reaffirm. In most states, as long as you remain current, a lender cannot reposes your vehicle.

I just filed and in my paperwork from my attorney, he states that he doesn't recommend reaffirming anything, but wants you to know that there could be a potential problem down the road EVEN IF you are current on payments. He said most lenders just want the monthly payments in a timely manner, but that FORD and CHRYSLER are known to reposess even if you are current on payments, trying to get you to sign a reaffimation. Although, I've been on this forum for over a year, I've never heard of a vehicle being reposessed and was current on payment (except CU vehicle loans).

btw: I'm in California

[mgmadara]

I just filed and in my paperwork from my attorney, he states that he doesn't recommend reaffirming anything, but wants you to know that there could be a potential problem down the road EVEN IF you are current on payments. He said most lenders just want the monthly payments in a timely manner, but that FORD and CHRYSLER are known to reposess even if you are current on payments, trying to get you to sign a reaffimation. Although, I've been on this forum for over a year, I've never heard of a vehicle being reposessed and was current on payment (except CU vehicle loans).

btw: I'm in California

Our auto loan was with Chrysler, we had a lot of equity and we had no problem with them. They never even asked us to sign a reaffirmation agreement. We did file old law and things were a little different then but it's hard for me to believe with Chrysler's current financial difficulties, that they would take a car from somebody who is current on payments.

[griswald]

My lawyer told me that if you don't reaffirm your mortgage and later you are late on a payment they still have to go through the foreclosure process.. Is this right because seems like others here are saying different..

[moneytrouble]

Correct. If you don't reaffirm, then they do go through the foreclosure process separately. Once your bankruptcy is discharged, your mortgage will be listed as part of the bankruptcy. The mortgage company can not go after you for money, or add anything negative to your credit report, legally, after your discharge. The foreclosure process is slow right now in many states, so it could be up to a year before they start foreclosure proceedings. I have not made a mortgage payment in 7 months, foreclosure has not started yet, and I was already discharged.

[griswald]

Thanks moneytrouble appreciate the reply.

were you making payments while in the bk? and do you plan on keeping the house? were you late or behind before you filed? Hope you don't mind me asking, if you do, no problem I understand .. Thanks again..