Rules of Reaffirmation?

[winona55987]

What are the rules for reaffirmation?

In Chapter 7, trying to reaffirm the debt with country wide now BoFA for the first mortgage? Does anybody have recent experience with BofA on reaffirmation?

[whipster1]

What are the rules for reaffirmation?

In Chapter 7, trying to reaffirm the debt with country wide now BoFA for the first mortgage? Does anybody have recent experience with BofA on reaffirmation?

Why don't you start your own thread instead of asking your question in a thread that is already talking about something completely different?

[lrprn]

Why don't you start your own thread instead of asking your question in a thread that is already talking about something completely different?

Through the magic of forum moderating, winona55987 now has her own thread

[lrprn]

What are the rules for reaffirmation?

There are a lot of reaffirmation rules that depend on the asset you plan to reaffirm and how the reaffirmation fits within your planning for bankruptcy and after discharge.

What are you concerned about?

In Chapter 7, trying to reaffirm the debt with country wide now BoFA for the first mortgage? Does anybody have recent experience with BofA on reaffirmation?

There are several discussions about reaffirming with BofA. Try doing a forum search to see what turns up.

Be very careful reaffirming a mortgage. If you are underwater on your mortgage and the market does not improve (and it's not supposed to improve for quite some time), if you have to sell your house it's very likely you are not going to be able to pay off your mortgage. There's nothing worse than selling a house and dragging along the part of the loan that you couldn't pay off. If the shortfall is severe enough, it could prevent you ever owning another house again.

Reaffirmation should only be done if your experienced bk lawyer tells you you should reaffirm. Most will recommend against it.

[DeadManCrawling]

Most will recommend against reaffirming.

However, INTENT TO REAFFIRM is a different matter entirely. This allows you to claim your mortgage expense, in most districts, even if it exceeds local standards.

THEN, you simply do not sign the papers to reaffirm. This has been done many times.

The point is that you can pass the means test based on expenses and STILL let the home go.

[Kingxray]

There are a lot of reaffirmation rules that depend on the asset you plan to reaffirm and how the reaffirmation fits within your planning for bankruptcy and after discharge.

What are you concerned about?

There are several discussions about reaffirming with BofA. Try doing a forum search to see what turns up.

Be very careful reaffirming a mortgage. If you are underwater on your mortgage and the market does not improve (and it's not supposed to improve for quite some time), if you have to sell your house it's very likely you are not going to be able to pay off your mortgage. There's nothing worse than selling a house and dragging along the part of the loan that you couldn't pay off. If the shortfall is severe enough, it could prevent you ever owning another house again.

Reaffirmation should only be done if your experienced bk lawyer tells you you should reaffirm. Most will recommend against it.

Interesting topic. We reaffirmed our primary residence and I asked the lawyer if it is a good idea to reaffirm. He said (in our district) if you surrender a home that you reaffirmed that it would take longer (and more money) for the mortgage co. to file a defiency than to simply foreclose. He also mentioned that defiencies are rarely filed on mortgages (in our district). So we signed the papers.

Now the UST has filed a motion to dismiss and in the motion it states that we intend to surrender both houses. Not true, we are just surrendering one house and keeping the other. Our reaffirmation papers are filed with the court. So isn't that funny? What's the point of reaffirming, ?

[kenshirley]

I am not sure there are any firm and hard rules regarding reaffirmation and apparently they are subject to change with the judge and district.
We reaffirmed our car in March with no issues.
But my daughter is going to have to file and when she asked about her truck she was told that the same judge that we had does not like them. He prefers that you just stay current on the debt if you want to keep it.
That way in the future if something goes wrong you can just turn it in?

[brokeballer]

I have BofA. I put down that I intended to reaffirm. I filed Aug. 14th, 341 was Sep. 18. I have not heard a peep from BofA. I no longer plan to keep the house, and I"m hoping I get lost in the shuffle for a while so I can live in my house for free for a long while so I can actually build up some savings.

What state do you live in? Some states do not allow deficiency judgements on mortgages, therefore it is pointless for the lender to do a reaffirmation.

[kenshirley]

As long as you did not sign paperwork at your attorney's office reaffirming you should be OK.
Otherwise you have until discharge to cancel the deal.

[miozelous]

I reaffirmed mortgage with Citi before they completed escrow account we had to set up. I had no idea that they would triple my mortgage. I am trying to sell my home (have 130,000 in equity in it). Can I cancel the reaffirmation since I have not been discharged yet. Toady was day 60. Thanks

[kenshirley]

That is what our attorney told us could be done, as long as it had not reaffirmed you could cancel it but it had to be done before the discharge.

[eddiep]

I answered you in the other thread, but I believe I was discharged today and BOA never offered a reaffirmation agreement, I wanted one, I wanted the security I guess, but they never offered.