Lawyer says no on house reaffirm.

[Chowder]

My Lawyer just stated that "we don't reaffirm houses, we just continue making payments."

From reading the board I have gotten the impression if one intends on keeping the house they reaffirm. I had planned on doing so.

Can the bank force us out if I do not reaffirm?

[liz417]

Our attorney advised us to not reaffirm anything. We intend on keep the house, 2 new(er) cars, etc. You just continue paying them the monthly payment on time.

[JRScott]

Depends on your state laws, most of the states so long as you continue making timely payments they can't kick you out of your home. (Many of them also protect vehicles and other secured property from seizure so long as you make timely payments).

While federal bk law says you have to reaffirm or redeem many state laws do in effect offer a 'ride through'.

[Chowder]

I'm in western Washington state. I'm going to guess he knows what he's doing.

Thanks guys.

[justbroke]

This depends on underlying State non-bankruptcy law. in many States, so long as you are current, they cannot foreclose or take any action! If your District has a local rule or administrative order which states that the policy is to not allow re-affirmations, then they are relying on the underlying State non-bankruptcy law to protect you.

Just don't ever fall behind. But again, you are doing a ride-through so have the best of both worlds! Walk whenever you want, without personal repercussion, or stay and pay!

[mike258]

This depends on underlying State non-bankruptcy law. in many States, so long as you are current, they cannot foreclose or take any action! If your District has a local rule or administrative order which states that the policy is to not allow re-affirmations, then they are relying on the underlying State non-bankruptcy law to protect you.

How do you find out if a certain State (specifically MA) has this law?

[HHM]

If your lawyer says don't reaffirm, then don't. Generally, reaffirmations are not required and most judges nowadays won't sign off on them anyway.

[justbroke]

How do you find out if a certain State (specifically MA) has this law?

You have to look at your State's laws on repossession, foreclosures and bankruptcy to see.

[laurannm]

How do you find out if a certain State (specifically MA) has this law?

Mike,

We live in SE Mass and we were told by our lawyers that in MA, lenders cannot foreclose/reposess as long as you are current. I think the same foreclosure\resposess time lines still apply.

[Chowder]

Just don't ever fall behind.

I guess behind needs to be defined. Payments are due on the first. Late after the 16th. Does behind mean the 17th or 30 days after the 1st?

Probably depends on the lender.

[justbroke]

I guess behind needs to be defined. Payments are due on the first. Late after the 16th. Does behind mean the 17th or 30 days after the 1st?

You need to look to your Mortgage/Note to determine what a late payment is.

For example, primary (first) mortgages, tend to allow 15 days grace. However, many HELOCs and Equity Mortgages (2nd or other junior liens), only have a 5-10 day grace period.

In any event, it's a combination of what constitutes a default/breach in your mortgage/note... and the foreclosure process in your underlying State non-bankruptcy law.

This is why I can't be specific. A global statement such as, just don't fall behind on payments, is designed to serve that issue... adeptly.

[ecsclb1724]

but if you do not reaffirm payments will stop being reported to the CRAs right?

[justbroke]

but if you do not reaffirm payments will stop being reported to the CRAs right?

Usually, not reaffirming the loan causes the Lender to no longer report to the CRA. This may just because of a system issue, since you technically don't owe the Lender anything.

[kenshirley]

Out attorney told us we had a choice on the car. He also told us that if you don't reaffirm and you are late even a day or two on the payments they will pick it up and have a right to do so.

[ecsclb1724]

Usually, not reaffirming the loan causes the Lender to no longer report to the CRA. This may just because of a system issue, since you technically don't owe the Lender anything.

see I'd much rather reaffirm. The housing market around here always stays pretty consistent and I want those housing payments on my CR for when we shop for a new house in 5 years or so.