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Reaffirm a Home, Or Not?

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    #1

    Reaffirm a Home, Or Not?

    Please give me some thoughts....We are filing and plan to keep our primary residance, and give up our 2nd home. We are not behind any payments on the primary, so my question is this:

    Why would we not reaffirm our primary residance with the mortgage company? What are the benefits of not reafirming this loan Vs affirming?

    Could they foreclose if not reaffirmed if we are current?

    All comments welcome.

    BooBoo
    Tags: None
    #2
    My understanding is this... (and could be wrong)

    If you reaffirm, you are liable for the debt (and payments) just as if you never filed for BK. This isn't really a bad thing...most times.

    If you do not reaffirm, and you keep up all the payments you should have no problem. However, if you lost your job and had to walk away from the house in say...2 years...you just walk away. You will lose equity of course, but they could not come after you for monies still owed on the mortgage and such, as it was officially included in your BK.
    8-07-09-filed Chapter 7
    11-18-09-DISCHARGED!!

    Life is not what challenges you face, but how you face those challenges.

    Comment

      #3
      Do you have equity in the primary residence or are you upside down on your mortgage?

      The risk of losing the house after not reaffirming the mortgage is slim to none as long as you continue to make your payments. Most of the benefits of that decision rest with you not the note holder.

      The main benefit to reaffirming a mortgage is the on-time payments will reflect positively on your credit report. In my opinion, that reason is not enough to make me want to reaffirm.
      Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

      Comment

        #4
        I do have about $45K equity in the home.

        BooBoo

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          #5
          Many that wind up here have lost their incomes or they have been reduced drastically to the point where they can no longer afford to keep what they have.
          Make sense??
          If you can afford to keep what you have and the courts approve that and determine that you can you are in good shape.

          Comment

            #6
            Originally posted by booboo View Post
            I do have about $45K equity in the home.

            BooBoo
            Is that equity exempt?
            Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

            Comment

              #7
              Originally posted by NoMoreCards View Post
              My understanding is this... (and could be wrong)

              If you reaffirm, you are liable for the debt (and payments) just as if you never filed for BK. This isn't really a bad thing...most times.

              If you do not reaffirm, and you keep up all the payments you should have no problem. However, if you lost your job and had to walk away from the house in say...2 years...you just walk away. You will lose equity of course, but they could not come after you for monies still owed on the mortgage and such, as it was officially included in your BK.

              My attorney advised the reaffirmation. He said that legally, the mortgage company can come any time and foreclose if I do not...even if I'm making payments. If i break that mortgage contract, I have no legal recourse to fight for my home should the economic tides turn and the bank decides they want it.

              Comment

                #8
                Yes, all equity in home is exempt. I will reaffirm to be safe. I am sure my Attorney will advise me the same.

                Thanks to all for input,

                BooBoo

                Comment

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