Not reaffirming but want to stay for a while

[mrscanthus]

Hello everyone
I am in MI. and soon to be discharged. Have a few questions and hope some of you will have some answers. I am not going to reaffirm my home. I am current on payments. I am not ready to go for another year or so due to circumstances. If I stay current do you think I will still get tossed out? Also, what if by some chance I am able to sell the place next summer (if that's even possibly legal for me to do so) would I get to keep any of the profit or would it go to the bank? Thanks.

[zpbk13]

I'm not sure if each state is different from I'm from Ohio and it's my understanding that as long as we stay current on the mortgage (we did not reaffirm) that we will not be foreclosed on. Our plan is to move to a warmer climate in 2-4 years so we are counting on being able to stay in the home and Countrywide/BOA is sure happily taking our payments over the phone through their bk department.

[NoMoreCards]

I am in Michigan also. I will not reaffirm my mortgage, however I am not giving up the house either. My attorney said as long as I stayed current on the payments, it isn't a concern. The benefit is that I can walk away at any time and not be responsible for the house. With this economy, you never know what the future will hold.

[logansdad]

Michigander too:

The only thing I worry about not reaffirming is looking back on ECON 101 and the pendulum effect when this comes back and the house values rise again what stops foreclosure then? for instance my house is appraised now for 174,000 I owe a 1st for 137k and a 2nd for 37k = 0 equity which would be lucky to get for 145k right now but that's another story. so say the house is worth 240,000 6 years from now. The bank decides that they want to move and close me out they wont loose anything then possibly gain...

[NoMoreCards]

I understand the concern. I have zero equity right now as well.. But in order for the bank to foreclose, they need to go to court. As long as you have proof that you have paid each and every payment, I can't see a judge allowing them to foreclose.

[SANDY075]

I'm from NV and did the same thing you did. I did not reaffirm my home but was current at time I filed. However, one thing I've noticed when I checked my credit report was...
my mortgage showed as $0.00 even if I made payments and I found out that if you did not reaffirm, they will not report your payments to the credit bureau. In short, I was like renting my home since its not being reported to credit bureau and not building up my credit back as far as Mortgage is concerned.

[logansdad]

I know and I wonder if there is some clause that says once bk is filed you have not honored your contract. This is somewhat scary to me I don't want to be hanging out 6 years from now and get e notice of default...

[hereforinfo]

Read your mortgage note. As long as you do not breach any of the covenants listed in your note, they cannot foreclose.

[mrscanthus]

Not reaffirming but want to stay for a while

Thanks everyone for your replies. I will rest better now. However, what about the selling part? It's a wonderful property (house not so good) and I have a little equity in it. Many have made offers on it before (should have sold it then). Lets say an oppertunity should arise in the future. Where would I stand? Would I be able to sell it and keep any profit or would the bank step in and take over? I am not trying to pull anything or make a killing just wondering what my options are. Thanks

[lrprn]

However, what about the selling part? It's a wonderful property (house not so good) and I have a little equity in it. Many have made offers on it before (should have sold it then). Lets say an oppertunity should arise in the future. Where would I stand? Would I be able to sell it and keep any profit or would the bank step in and take over? I am not trying to pull anything or make a killing just wondering what my options are. Thanks

Even though you didn't reaffirm, you are still the legal owner of the property. As long as you continue to make on-time payments, that will remain so. If you sell the property, unless your lender or another creditor has a pre-filing court-ordered lien against it that you didn't go back to court to get removed after your bankruptcy, the profits from the sale (if any) should be yours to keep.

[mrscanthus]

Thank you for the very informitive reply. I did not get any notices about any liens from anyone before I filed. So I should be OK. Thanks again.

[thereshope]

mrscanthus great question. I'm keeping my main home although I owe a bit more than it's worth because of a HELOC, the tax benefits are worth it for me and I have a fixed interest loan with a decent payment.

Question: So if you don't reaffirm and continue to make on time payments (assume that means by the 1st of the month), has anyone had issues from the bank while trying to make payments? or were you treated differently, like couldn't pay online or at the branch? just wondering.