The bank said I have 2 choices

[logansdad]

seeing a U-Haul roll up in front of the house to her is definitely not "warm and fuzzy" One thing Why would I want to stop making payments to call their bluff??? I intend to stay and make the payments in fact I am one ahead, (had to get rid of some cash before filing on 12/1)

[OhioFiler]

seeing a U-Haul roll up in front of the house to her is definitely not "warm and fuzzy" One thing Why would I want to stop making payments to call their bluff??? I intend to stay and make the payments in fact I am one ahead, (had to get rid of some cash before filing on 12/1)

Of course it's not warm and fuzzy. It is the opposite but an emotional reason nonetheless. I would recommend not making large financial decisions with any reliance on emotion. As Joe Friday was alleged to have said, "Just the facts, ma'am." Use the actual pros and cons of reaffirming to make your decision and you'll be much further ahead. So much of what led many of us here in the first place was emotion based purchasing via credit. Did you really need that gold-plated thing-a-ma-jig or did you buy it because it felt good?

I hope I didn't indicate to stop making payments as a strategy for calling their bluff. Continuing to make the payments is the appropriate strategy.

[logansdad]

I still don't see why I would not want a $890 house payment at 4.75 note on a 1900 sf finished basement colonial built in 04 ,that appraised for only 2k less than I owe. Where are you going to live for $900.00???

[OhioFiler]

I still don't see why I would not want a $890 house payment at 4.75 note on a 1900 sf finished basement colonial built in 04 ,that appraised for only 2k less than I owe. Where are you going to live for $900.00???

I'm not suggesting you surrender the house. I'm suggesting you not reaffirm the mortgage. You can stay as long as you want.

[backtoschool]

I still don't see why I would not want a $890 house payment at 4.75 note on a 1900 sf finished basement colonial built in 04 ,that appraised for only 2k less than I owe. Where are you going to live for $900.00???

Reaffirming the mortgage is a sound decision in your situation logansdad. I do not think that you need the extra stress of fighting with the bank.

[OhioFiler]

Reaffirming the mortgage is a sound decision in your situation logansdad. I do not think that you need the extra stress of fighting with the bank.

I agree.

[billf]

Why do you hate to say it if you believe it's the correct path?

Unless he's actually in default on his mortgage the bank won't have any grounds for a foreclosure action. No way will a bank foreclose on a mortgage that is paid current.

I'd have the attorney look closely at the mortgage note in the light of state foreclosure laws. If OP is complying with the mortgage agreeement, what are they using as a reason to foreclose, reaffirmation or not.

[logansdad]

I'd have the attorney look closely at the mortgage note in the light of state foreclosure laws. If OP is complying with the mortgage agreeement, what are they using as a reason to foreclose, reaffirmation or not.

Bill its a small town conservative bank not the large box variety, they claim its their policy not to allow a " ride thru " Either I reaffirm or I must surrender the property is what the lady told me yesterday. I do like the option of walking if things get worse in the near future, which is highly possible considering the leadership in place in this state. I may challenge them and just stay current and drag my feet a little to sign and see what happens. when I talked to the lawyer he said the same thing " ah their not going to want another house" but I don't know they may be stupid enough to enforce it.

[hereforinfo]

I would read the mortgage note and see if it states whether filing bankruptcy is considered default. The note will list the items that constitute "default" - which doesn't just mean missing payments. Several things can be considered default (such as signing a quit claim to another party without the lender's approval), so what they can and cannot do really depends on what is in your specific note.

[LostInWI]

I don't know a whole lot on the subject, and I'm reading this thread to learn more for my own situation, but somewhere I read that some banks don't have anything to lose doing a foreclosure/shortsale as long as the debtor has been carrying 100% gap coverage PMI. In this instance supposedly, even though they (the banks) have to 'go through the motions' of foreclosing etc., when all is said and done, they get any deficiency $$ out of the PMI policy. I don't know if this is true, just what I read somewhere. I would think that the PMI companies wouldn't allow this in a 'paid-current' scenario that the baank just chose to foreclose on as it would seem abusive to the policy, but I surely see banks doing anything possible to eliminate any 'risky' assets (mortgages without any personal liability backing i.e. Ch. 7 filers) from their balance sheets. Anyone got an insider friend at a bank with insight?!?! BTW, I'm leaning HEAVILY toward NOT reaffirming. Actually, please see/help with my thread to that regard as well. Thanks!

[logansdad]

I have no PMI also I did read the note and there is verbiage about the banks best interest and bankruptcy, just as the other poster mentioned. It reads to the effect that when you signed the document you were not in bankruptcy and entering into bankruptcy violates the original terms. I am not so worried about now, my fear is 6 years down the road if values rebound, which history proves they will, and then I owe 150k and the house is worth 200k they would probably move on that.

[LostInWI]

I wondered the same thing until I read about a doctrine of 'laches' regarding a party not being able to sit on their legal rights regarding equity in a situation for it to improve before exercising those rights. Read the article on the link below and then google 'doctrine of laches'. It put my mind at ease.

http://www.thebklawyer.com/thebkblog/2007/03/31/chapter-7-debtor-did-not-reaffirm-mortgage-is-her-home-now-at-risk/

[UpsideDownMI]

If you are current on all of your payments they can not foreclose per Michigan foreclosure law. I was told this by a chapter 7 attorney I consulted with when I considered going the 7 route. This attorney only does 7's and does not allow his clients to reaffirm mortgages, because of this. I reviewed dozens of his filings on Pacer and none of them reaffirmed mortgages. On the statement of intentions he only checked the "retained" box and nothing else. I would verify this with your attorney.

Another thing you could do is have your attorney refuse to approve the reaffirm agreement, so that you will have to have a hearing for the judge to approve the agreement. If your attorney does not approve the agreement, it is very likely that the judge will deny the reaffirm as undue hardship to the debtor. When this ruling happens, it is ordered that debtor may keep the collateral as long as payments remain current. Search the eastern district web site under opinions and you will find rulings on this.

[AngelinaCatHub]

I have no PMI also I did read the note and there is verbiage about the banks best interest and bankruptcy, just as the other poster mentioned. It reads to the effect that when you signed the document you were not in bankruptcy and entering into bankruptcy violates the original terms. I am not so worried about now, my fear is 6 years down the road if values rebound, which history proves they will, and then I owe 150k and the house is worth 200k they would probably move on that.

No they could not for no good reason just up and repo your place because it appreciated in value. If you keep paying I really, really, doubt they would throw you out.

They are likely to tell you anything. You must have learned that here with all debt collectors. It is your call of course, but one way, you will be stuck with it, and on the other hand, you have a possible out if things go to h*ll. 'Hub

[logansdad]

well we have decided to play hard ball we are NOT signing anything an attempting a ride through. They sent some reaffirms today now with legal fees for their lawyers drawing up the papers joke. So we are prepared to move and live here for free if they start the process (still current)