Being current on mortgage(s) and filing Chapter 7

[justbroke]

Do you mean the trustee would not allow the reaffirmation or the bank?

The Trustee can't decide reaffirmations. It's your attorney and/or the Judge. Your attorney should make sure that it's in your best interest to reaffirm a $300K "negative" equity property. I can't think of a reason why an attorney would. If the attorney refused to sign it, you can go before the Judge. More than likely the Judge will not allow the reaffirmation. It just doesn't make sense.

[liboton21]

The Trustee can't decide reaffirmations. It's your attorney and/or the Judge. Your attorney should make sure that it's in your best interest to reaffirm a $300K "negative" equity property. I can't think of a reason why an attorney would. If the attorney refused to sign it, you can go before the Judge. More than likely the Judge will not allow the reaffirmation. It just doesn't make sense.

If I don't reaffirm, how long will the bank act on foreclosing the property? Can I do a "ride-through"? Thank you for your input.

[justbroke]

If I don't reaffirm, how long will the bank act on foreclosing the property? Can I do a "ride-through"? Thank you for your input.

I'll answer the second question first. A ride-through may be available if you are current (not in arrears). As to your first question, if you don't reaffirm, the bank may file a motion for relief from the stay (MRFS). However, they usually won't do the MRFS if you are current. You will need to determine if ride-throughs are common in your State/District.

Technically speaking, a creditor who has a mortgage/note on real property can't foreclose if you're current (underlying State non-bankruptcy law). This is why many people will "ride-through" their mortgage because it's the best of both worlds. (Again, this depends on your particular State's non-bankruptcy law.)

[liboton21]

I'll answer the second question first. A ride-through may be available if you are current (not in arrears). As to your first question, if you don't reaffirm, the bank may file a motion for relief from the stay (MRFS). However, they usually won't do the MRFS if you are current. You will need to determine if ride-throughs are common in your State/District.

Technically speaking, a creditor who has a mortgage/note on real property can't foreclose if you're current (underlying State non-bankruptcy law). This is why many people will "ride-through" their mortgage because it's the best of both worlds. (Again, this depends on your particular State's non-bankruptcy law.)

Wow! No wonder you are the guru. Thank you very much.

Just found this link regarding BK and reaffirmation:

http://dcandmarylandcreditanddebtattorney.com/chapter-7-bankruptcy-mortgage-reaffirmation-and-mortgage-modification-including-hamp