Reaffirming 1st & 2nd vs ride thru

[maddog2112]

Aces, noone has sent me any reaffirmation paperwork either. Thats why I`m trying to get some opinions and information to decide what is best. Thanks

[flynbvr]

Our court date is next month. We have a $460K 1st and $150K HELOC. The house is worth $330-$350K. Both are held by WAMU which is now Chase. We've rcvd an Acceleration Warning (Notice of Intent to Foreclose) on the 2nd and my ACH on the 1st has been cancelled. We have never been late on the 1st and are currently 90+ days late on the 2nd.

We had intentions of reaffirming the 1st only. If I understand the recs on this post it is to our benefit to ride thru rather than reaffirm. We obviously do not have the funds to pay on the second now or after the disharge.

I want to better understand what happens if we dont reaffirm but stay current on the 1st if in the future we want/need to refi? If we dont reaffirm do we still get the tax benefits? What happens to the second if we dont reaffirm AND we dont pay another dime?

There is a previous post (http://www.bkforum.com/showthread.php?t=24853) about federal taxes and it states "You need to file a Motion to Determine Value of Lien with the BK court. This act starts an adversarial proceeding. The reason to do so is to establish the value of the IRS's lien. Take this one step further, if there is no value to the home, then the lien attaches to no value and you can extinguish the lien". Is there something similar that can be filed regarding the 2nd? I ask because my house is so upside down (approx $250K).

Thank you all in advance for any information, guidance, or wisdom you may have on the matter!

[lifelesson]

Okay, here's how ours went Our atty advised us to reaffirm the cars adn teh house we aren't unpside down at all. We let a travel trailer go. We are Bk the debt we have from CC's.
Our Credit Union showed at the 341 (2 cars and a CC with them = less then 10,000) They had reafform papers for the cars wth them and we signed them and the CU atty said Have a nice day. As for the house the 2nd mortage sent in a reaffirm for us right away. We signed it (because we know our house will sell for more then the 1&2 and go fast even tho times are tough. We have folks who have told us when we're ready to sell they'll buy so it's good) We had to pretty much hunt down Chase for the reaffirm papers and due to them being behind (which I hear is no often for Chase) we have to file to extend our discharge date. Which to me sucks but what else to do. Any way all the papers are filed and we just wiat it out now.
Our Atty said You want to keep good relations with CU and Pedatrician, all others well sorry.
So Nov 22nd should be a good day for me , but it falls on a Sunday.

ohio northern district.

(Hope this helps and yes we did think of not reaffirming but this is how we handled it.)

[flynbvr]

Totally makes sense that you would reaffirm as your home is worth more than what is owed. We on the otherhand are underwater by more than $250K on the house.

I know theres no way to say for sure but I want to know that if i choose to ride thru and stay current on my 1st (underwater by more than $100K) will the second (same bank Chase) really foreclose? If so, how does that make good business sense on their end?

As if life isnt hard enough right now but my wife and I are totally stressed about losing the house because we didnt ask enough or the right questions. Ignorance provides no peace of mind on the matter when the roof over our heads is at stake.

[logansdad]

I would ride through on both make the payments and when you need to leave, leave.

[maddog2112]

Do you have to go back to court for the reaffirm?

[aces67]

If your lawyer signs off on it you don't.

How are things going for you BTW? I know you had your 341 already but have you heard anything from the UST?

[maddog2112]

Aces, thanks for asking. It`s been over 20 days since our 341 and nothing yet. I got the no distribution and trustee asking to be released from case at 10 days. Nothing else. I can only consider that great news. My lawyer never really said anything about reaffirming, and I haven`t gotten anything from the 1st, 2nd, or vehicle. All are current. I think this coming week I`ll email my lawyer and ask him about it. He`s always been great at answering e-mails quickly. What exactly do you mean by the lawyer signing off on reaffirmations?

[aces67]

Sounds like things are going really good for you then! Congrats!

The lawyer can sign the reaffirmation and if he approves it then the judge doesn't have to look at it. The lawyer will only sign off on it if it won't pose a hardship to you. My lawyer completely advised against reaffirming but we love our home. Our payment is low and it's on dh's family's land- 65 acres. We don't ever plan on going anywhere so we did reaffirm it.

[maddog2112]

Thanks aces, I`ll ask my lawyer about reaffirming see what he thinks. I`m kinda surprised noone has sent anything. it`s been 20 plus days since our 341. I wonder if that is normal? Maybe it`s because we were never really late on any of the payments on our 1st ,2nd or vehicle.