Reaffirming Mortgage

[cfgdag]

At first hubby and I were against giving up the house, we agreed to reaffirm. After pulling the comps on our house and seeing comps being sold for 200K (we owe 330k) we are rethinking it. We pay almost 2400 a month for our house and know we can rent something similar for about half, which means we could save quite abit of money over the next few years for a down payment to buy another house. My question is, is it possible to buy another house only 2-4 years after a bk and giving up a house, and have a decent interest rate? We hate to give up our house (alot of memories) but also hate being so underwater with the mortgage and knowing it will take a long time for the market to come back before we have equity again. We figure if we could buy something again in 2-4 years then we could buy something similar to what we already have, for much less than we paid for this house. I guess we feel if we have one shot to start fresh, we want to take advantage of everything possible. But, don't want to hurt ourselves in getting another house in the near future. Another thing we have to think about is our mortgage rate will adjust in 3 years....so our payment could potentially be higher then, something we are not sure we could afford. Does it sound like a pipe dream thinking we can walk away "scott free" from our debt on this house only to buy another in 2-4 years?

[lafrteacher]

I'm not an expert on reaffirmations, but from what I understand, it's a new contract, and terms can be negotiated. We are planning to try to negotiate down our interest rate and total owed on second mortgage if we reaffirm. I don't know how successful we'll be, but we're going to try.

Anyone here successfully negotiated down their interest rate/balance?