Before I ask my question, I just want to say what an awesome place to find information. I been using this forum to answer a tons of questions just reading. And just want to say thanks to all who post here.
That being said, I have another question regarding reaffirming a mortgage. I have read tons of threads regarding this but I think ours is a little different and hopefully someone will know the answer.
Here is our situation, 2 years ago my wife co signed on a house with my dad (he just changed jobs and only 1 year on the job) to help them get there house & help us get out of debt (I just lost my job). The plan was they would make all the payments which they have, and we would refinance and get my wife off mortgage while we cleared our debt to buy our own house. Obviously the economy has tanked, and the house is upside down.
Well unfortunately it took me longer to find a job, but got one now and love. We did fall further in debt along the way while I searched for a job. We never missed a payment and were making progress this last year with me working (eliminated $20,000 in unsecured debt last year).
We hit snag in the road, my dad lost his job in January and we start helping by paying half the mortgage. Now he does have 1.5 year reserve for full payments but we are still trying to help while he finds another job incase it takes longer than expected.
To top it off all our credit cards raised our rates this year( we had some 9% raised to 27.99%). With unsecured debt sitting around $70,000. We realized there is no way we can ever get out of this and move out, and now we are expecting in late October
We needed to do something to get a fresh start. So we can move out and get more room for us as we need our own space and the baby will obviously need more room.
So that being said, here is the situation we filed for BK(no asset) and the attorney doesn't think we will have no issues with our case. We originally told him we wanted to reaffirm our 2 cars (07 & 08) and the mortgage. We did sign for the 1 of the cars so far, which we have no issue we want to keep the cars and have it help us build credit after the BK.
But after reading this forum we realized we didn't have to sign our life away on 30 year mortgage for house that isn't ours, because my dad wants to keep the house.
We did use the mortgage for the means test, but we do not want reaffirm as we do not want to keep my wife on the house, and plan a few years down the road of trying to get our own house.
My understanding from reading other questions similar is if we do not sign reaffirming the mortgage we can walk away and the debt gets discharged along with everything else, but here is the problem I think. My dad wants to keep the house which is fine.
Here are my questions,
1. Since my dad is a co signer this will automatically default to him?
He wants to keep the house and will keep making payments. Which we are fine we think.
2. What happens if we do not reaffirm & my dad keeps making the payments, do we call the mortgage company after we get discharged and say we did not sign please take us off the mortgage? Will they do that?
3. How does this get reported on her credit report? since she didn't sign but payments are still being made? Is it showing as discharged since she didn't sign? Or is it still showing payments are being made?
4. When we do get the papers to reaffirm if they ever send them, do we need to notify them we changed our intentions if they send them before the discharge happens?
Thanks in advance, and for reading. I just wanted to give much info as I possibly could. I apologize in advance if this has been answered before, I couldn't anything that matched this situation. We just don't want to have further problems in 3 years that her credit report is still showing we are still responsible.
Hopefully this all makes sense, and should have typed this up when I got home from work
That being said, I have another question regarding reaffirming a mortgage. I have read tons of threads regarding this but I think ours is a little different and hopefully someone will know the answer.
Here is our situation, 2 years ago my wife co signed on a house with my dad (he just changed jobs and only 1 year on the job) to help them get there house & help us get out of debt (I just lost my job). The plan was they would make all the payments which they have, and we would refinance and get my wife off mortgage while we cleared our debt to buy our own house. Obviously the economy has tanked, and the house is upside down.
Well unfortunately it took me longer to find a job, but got one now and love. We did fall further in debt along the way while I searched for a job. We never missed a payment and were making progress this last year with me working (eliminated $20,000 in unsecured debt last year).
We hit snag in the road, my dad lost his job in January and we start helping by paying half the mortgage. Now he does have 1.5 year reserve for full payments but we are still trying to help while he finds another job incase it takes longer than expected.
To top it off all our credit cards raised our rates this year( we had some 9% raised to 27.99%). With unsecured debt sitting around $70,000. We realized there is no way we can ever get out of this and move out, and now we are expecting in late October
We needed to do something to get a fresh start. So we can move out and get more room for us as we need our own space and the baby will obviously need more room.
So that being said, here is the situation we filed for BK(no asset) and the attorney doesn't think we will have no issues with our case. We originally told him we wanted to reaffirm our 2 cars (07 & 08) and the mortgage. We did sign for the 1 of the cars so far, which we have no issue we want to keep the cars and have it help us build credit after the BK.
But after reading this forum we realized we didn't have to sign our life away on 30 year mortgage for house that isn't ours, because my dad wants to keep the house.
We did use the mortgage for the means test, but we do not want reaffirm as we do not want to keep my wife on the house, and plan a few years down the road of trying to get our own house.
My understanding from reading other questions similar is if we do not sign reaffirming the mortgage we can walk away and the debt gets discharged along with everything else, but here is the problem I think. My dad wants to keep the house which is fine.
Here are my questions,
1. Since my dad is a co signer this will automatically default to him?
He wants to keep the house and will keep making payments. Which we are fine we think.
2. What happens if we do not reaffirm & my dad keeps making the payments, do we call the mortgage company after we get discharged and say we did not sign please take us off the mortgage? Will they do that?
3. How does this get reported on her credit report? since she didn't sign but payments are still being made? Is it showing as discharged since she didn't sign? Or is it still showing payments are being made?
4. When we do get the papers to reaffirm if they ever send them, do we need to notify them we changed our intentions if they send them before the discharge happens?
Thanks in advance, and for reading. I just wanted to give much info as I possibly could. I apologize in advance if this has been answered before, I couldn't anything that matched this situation. We just don't want to have further problems in 3 years that her credit report is still showing we are still responsible.
Hopefully this all makes sense, and should have typed this up when I got home from work
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