Housing Question..

[novemberbg]

Thank you Ohioflyer.

Im sorry for the confusion but what do you mean by unofficial? Meaning its not put out there as an open option but if you just keep paying it happens automatically? When my husband is asked to reaffirm the mortgage (Which I assume he will be) he just does nothing?

[OhioFiler]

Thank you Ohioflyer.

Im sorry for the confusion but what do you mean by unofficial? Meaning its not put out there as an open option but if you just keep paying it happens automatically? When my husband is asked to reaffirm the mortgage (Which I assume he will be) he just does nothing?

There is no legal mechanism to do a ride through in the BK laws as of the BK reforms in 2005. Congress tried to eliminate that option for bk filers in the new law because the creditors are exposed as you could walk away at any time and owe nothing.

In practice, the lenders found out it was actually to their benefit to continue doing ride throughs otherwise they would have ended up with lots of vehicles and homes worth much less than was owed on them. It became clear it was better to accept payments from the discharged borrowers and not take possession on the property. The banks make more money allowing a ride through than they do taking the asset from you.

You husband will indicate on his petition he intends to reaffirm the mortgage but so long as he never actually signs papers and has a hearing then a ride through will have occurred. At that point in most cases, so long as you continue to make the payments the bank will not bother you.

[poorold]

I believe in FL there is no requirement for a reaffirmation agreement on a principal residence.

Please consider that if you sign a loan modification without a major principal reduction, you put yourselves in jeopardy as follows: if you need to sell the house for any reason in the next 5-10 years(illness, relocation for job, etc.), it is very likely you will do so at a price less than the mortgage amount and have that debt hanging over you for a very long time.

I think I agree with your husband. I know what it is to "love" your home, but there are other places you can make your home for a lot less money and potential hassle.

Plus, if you are in FL, you can probably stretch out the foreclosure process for quite a while. I stayed in my home over a year and only left because I surrendered it when I filed--or I could still be living there.

Imagine 10-12 months of no payments, plenty of time to get organized and find a place and the ability to move your stuff over the course of a month instead of a weekend.