Reaffirmation question

[ecsclb1724]

So I just got reaffirmation paperwork in the mail Saturday for our mortgage and had a question on it.

We were currently 60 days late when we filed. I had previously talked to them about catching up and made a double payment in December, so right now I am only one payment behind. I had originally planned on sending my tax return in to catch up completely but looking at the paperwork I'm not sure I have to?

The agreement states that payments of $1,289 will begin on Jan 1, 2010 and continue for the life of the loan. I just got the paperwork, but I made a payment of $1350 on the 10th of Jan so I overpaid a little.

Does the reaffirmation equate to a whole new loan agreement voiding any past due balances?

I would love to keep my tax return if possible, I'm having a baby in March and need a new carseat/crib and would love to add some to our now non existant savings account! I filed pro se and wanted to get some advice here because I'm not sure if I call the mortgage place if they will give me an honest answer.

[AngelinaCatHub]

You sure are paying a hefty mortgage. Are you going to go 7 as indicated? Can you consider letting the house go and rent? After all, you are bankrupt. I would ride out the house, not reaffirm at all as you then are locked legally and do not have bk protection. If you can pay that kind of rent, you could do well if you pay less or just "pay through".

I am sure as a pro se, you know all about these terms. The C7 book from Nolo Press is very good. $17 bucks in pdf format off nolopress.com .

About the tax return, depends on when you file and your Trustee. If you spend it on all exempt stuff, you may get away with it. If it is enough to bring your mortgage up to date, then better yet. Pay through, don't reaffirm. REALLY consider this. 'Hub

[ecsclb1724]

Letting the house go would not be smart on our part. We're not upside down at all (probably have a few thousand in equity) and live in one of the only parts of the country where home prices are rising. We're planning on moving in a couple of years and by that time we will have approx 10-15K in equity (we're making some simple improvements that will greatly increase the value, like fixing up our backyard that was just weeds when we got here). We could probably rent for a couple hundred a month less, but we can easily afford our house payment after BK so we'd just rather stay and reaffirm.

I've already exempted my tax return so that's not a problem at all.

[mickeyme]

Congrats on the baby...I understand wanting to keep the home but be careful with the reaffirmation. If you continue to pay the mortgage through the BK and after the bank should do a rid-through. In a couple of years when you are ready to move you still have the option to put your home up for sale and if it has indeed increased in value you are still entitled to the profits (or at least in CA that is what my mortgage co stated). Keep in mind a few thousand dollars in equity will be gobbled up fast with fees and commission. Good luck