Ride Thru vs Reaffirmation

[kw1025]

There has been much discussion about this on this forum. It seems banks have been letting more people "ride-thru" rather than re-affirm, and i think i just figured out why.

If you need to modify your loan in the future, which you may someday want to do, especially if you have an adjustable rate or interest loan, the bank will end up "re-affirming" with you when you do THAT deal. Basically, you are just putting off the "re-aff" right now. When you NEED to modify the terms down the road, THAT is when they will get you to do a new deal, signed and re-affirmed

For now they are satisfied with "ride-thru" because your loan terms may not be that great anyway.

I knew it could not be THAT easy....banks are not dumb.

[NanaOf11]

Question.... When you modify after discharge on a mortgage you did not reaffirm... is this like a new loan & will it then show on our credit report?

This is exactly our situation...

[bktek]

I think you may be correct about this. After I filed for CH 7, I contacted Wells Fargo about reaffirming my home equity loan. They told me that they would reaffirm, but they wouldn't renegotiate the terms of the loan before discharge. So, I took a pass on reaffirmation and decided to pay through.

I have approximately four years left until the loan term ends and I'm faced with a huge balloon payment. The amount I'm paying monthly to stay in the house is cheaper than I could rent. My current plan is to make the minimum interest payments for as long as possible. If I can manage to make payments until the loan balance is due, I will make them a take-it-or-leave-it offer for the house. If they refuse the offer, I'll simply walk away.