I just don't know what to do about my mortgage

[lulabelle]

We intend to stay in our house and stated our intentions were to reaffirm. Our trustee gave us a sheet at our 341 that stated we had 30 days to follow through on our intentions. I called our attorney's office and asked if our mortgage company would send a reaffirmation agreement or if we had to request it. She said they would have to request it, but that we probably wouldn't get one and that they normally didn't bother. So I guess they're not.

Not quite feeling comfortable with this, I called the mortgage company and asked what they normally do - require a reaffirmation or allow retain and pay. The guy went on about how my attorney would have to send the agreement and it would have to be filed with the court. It didn't answer my question at all. I did specifically ask is they would allow us to pay as agreed and he just said "You can continue to pay." What kind of answer is that?

Now I don't know what to do. Obviously I would like to retain and pay but I don't want any surprises down the road and I've heard that they (TCF) want reaffirmation agreements. Should I just push for my attorney to send the reaffirmation agreement?

[lulabelle]

Anyone have an opinion, thought or idea? Pretty please?

[Meatstick]

You have to state your intentions on your petition and then have your attorney request the reaffirmation from the mortgage company. Some mortgage companies are not even responding to these reaffirmation requests though. IF your underwater on your mortgage your attorney and the court probably wouldn't approve a reaffirmation anyways. Keep in mind that it can affect your Means Test and also Schedule J as some districts try not to allow mortgage payments on property that isn't re-affirmed.

We filed last week and are $100k underwater so we decided to surrender on the petition. When I questioned our attorney on the TT/UST disallowing the mortgage payment on the means and also on Schedule J he specifically stated that the Arizona Bankruptcy courts allow the mortgage payment deduction as long as your mortgage company hasnt already foreclosed. I even called Wells Fargo and they basically said they wont do anything until we are 90 days past due, we are current. Some people say the mortgage industry is due to fail and not rebound for 10 - 15 years. Why torture yourself and lock back into a mortage on a property thats probably never gonna be worth what you owe on it. I would cut and run or discharge the financial liability and continue to pay if you want to stay.

Good luck !

[Mensa1]

lulabelle:

Meat gives you good advice.

What is helpful when you ask such a question is to mention which state you reside because the answer can be different depending upon which circuit court you fall under.

Whether you state surrender or retain, it isn't going to have any impact on whether the lender forecloses or not as long as you remain current. As stated, it can impact your means test in some courts, but not in others.

We just checked other: Retain and pay. My Atty told me that would never fly, and he didn't agree with my thinking on that at all. When I went to 341, I intentionally brought it up, there was discussion with TT about it and no problem with the election. There was another Atty attending in place of my Atty (pinch-hitter) due to the distance of the meeting from my Attys location. When the 341 was over the pinch-hit Atty said that I made the right election to retain and pay, vs. reaffirm. So all Attys do not have the same opinion, nor the right answer, apparently. I was adament about the info that I have learned here, against the advice of my Atty, and apparently it turned out to be the right direction. So thanks to all of those before me that provided such advice.

[lulabelle]

We are one of the lucky few that have equity in our home, so we don't want to risk losing it at all. We did check "reaffirm" as our intent. We are in MN, so I don't know what generally flies here.

I want to trust that they won't foreclose as long as we remain current (we have always been current), but in the back of my mind I worry that they may still try to foreclose on us.

Thank you both for your replies!

[blessed]

It does not make sense for a bank to foreclose if you're paying on time. I had that fear in my head for awhile too, but WHY would a bank go through the trouble? Try not to worry.