reaffirming mortage

[rck3]

OK so I have read a ton of stuff on reaffirming mortages but I did not find much on why you might want to. I have a 1st and 2nd mortgage which total about 185k. House is worth 180-190k right now. I want to keep it and have never been late, why should I even consider reaffirming? do they ever give you an incentive to reaffirm?

[car67]

Dont reaffirm there is no logical reason to do so.......

[justbroke]

There is no incentive to reaffirm.

However, at least in Florida and the 11th Circuit Court of Appeals (Alabama, Georgia, Florida), you must reaffirm, surrender or redeem. In most cases, the lenders do not complain if you "pay and stay" (don't reaffirm). However, the ankle biters (credit unions, really small banks) tend to complain.

Even having "trade line" reporting is really neither an incentive or a reason to reaffirm.

In fact, in at least several States, the Judges won't allow reaffirmation of a mortgage in a "no recourse" State. The Judge will tell the debtor "I'm doing you a favor".

[rck3]

That is what I figured but I wasn't sure if 2nd's come back with something like reaffirm and we will lock in this rate or accept this much of a payback. Same with the 1st if they would say reaffirm and we'll cut your rate X

[justbroke]

That is what I figured but I wasn't sure if 2nd's come back with something like reaffirm and we will lock in this rate or accept this much of a payback. Same with the 1st if they would say reaffirm and we'll cut your rate X

That would be called a modification. Most mortgage companies will not "negotiate" a reaffirmation agreement with new terms. I've actually never read one case in which any terms, except maybe re-aging the account, was done inside a reaffirmation agreement for real property.

You can negotiate something after you discharge the debt! Trust me... once you receive the discharge and are no longer responsible, they tend to do modifications quicker, easier and without all the hassle people who DO OWE the debt go through.

(Of course, your mileage is likely to vary based on your lender. )

[nomoneynomore]

We reaffirmed our house with no problems. Our lender was very easy to work with and we made a few changes to how our payments were made after we discharged. We only did so because our house was worth approx $20k more than what we owed on it. We sold it 6 months later for a profit.

Even if you reaffirm, it will still show on your credit report as having been included in the bk. We had hoped that reaffirming our home & vehicle would make our credit look a little better, but it didn't. However, when we provide paperwork showing that we paid the accounts off, lenders are very happy to see it. It has made a very positive impact on loans/credit we have received.

[rck3]

What changes were you able to make after the BK? My loan is at 6.25% as I did a no income verification loan 3 years ago due to way my income was showing at the time. We are current on everything and we will stay current on our home

[horse]

If I'm understanding everyone correctly....it's not necessary to reaffirm a mortgage...?? We received a letter in the mail stating our mortgage company wants us to reaffirm...and it almost sounds like if we don't we could face penalties from the mortgage company. If a person doesn't reaffirm but continues to pay is there anything the mortgage company can do to you legally...like raise your rates/payments or foreclose on you?

[rck3]

from what I have read it all depends on the state you are in. If you post were, maybe someone will be familar.