reaffirm paperwork

[Maine]

Who makes the request to reaffirm? Me or Ford Motor Credit?

Is the reaffirm done before or after the 341 meeting?

What's the chance they will raise my interest rate in the reaffirm?

I know I want to keep my car, I know Ford will force a reaffirm, and I just want to get it over with as soon as possible. I am really hoping they will let us keep the 0% interest we have right now.

Thanks! Maine

[RobGee]

Who makes the request to reaffirm? Me or Ford Motor Credit?
Ford will want you to reaffirm the debt with them. Keep in mind if you reaffirm the debt you are liable for that debt. If you fall behind in the future they can repossess and sue you.
I always ask my clients to see if they are allowed to make "voluntary payments" without reaffirming the debt. Try it

Is the reaffirm done before or after the 341 meeting?
Usually they will send out a reaffirmation agreement
anywhere from a few weeks to a few months out. I've seen a reaffirmation agreement come after the discharge.

What's the chance they will raise my interest rate in the reaffirm?
Good possibility.

I know I want to keep my car, I know Ford will force a reaffirm, and I just want to get it over with as soon as possible. I am really hoping they will let us keep the 0% interest we have right now.

Thanks! Maine

[despritfreya]

Ford's attorney will send you the documents long before the 341. Ford will not be changing the terms of your contract and that includes the interest rate. When you reaffirm a debt you reaffirm the contract that was in existance before you filed. Nothing more, nothing less. I have seen a few creditors actually reduce the interest rate or the amount owed but that is a rare duck.

Once reaffirmed and assuming you do not properly rescind the agreement, you will be liable under the contract. If you default, Ford will repo the vehicle, sell it and then sue you for the balance. While you have a great interest rate (0%-can't beat that) you need to be sure (as best as you can) that you can afford the payments before you reobligate yourself to the loan.

[ccsjoe]

I called Ford as I am in your same boat (or soon will be). FMC does not change any terms, including interest rates, so you will be just fine. As the previous poster said, just make sure you can afford to keep it as you'll be liable for the debt.

[tcreegan]

you request affirm paperwork

Hello Maine,

You (or your attorney) ask FMC for the reaffirm paperwork.

Look it over for changed terms. I have not read anywhere in the forum that the terms were changed unfavorably but it can happen. When you sign the reaffirm it is essentially a new contract between you and FMC.

I have also read that FMC does not require reaffirm for lower $$ loans (below 3K I seem to remember....but don't quote me on that....)

Mass. and some southern states have rules that if you mark "reaffirm" on your statement of intentions but never ink a reaffirmation with the lender, they cannot repossess as long as you stay current on your payments. Not sure where Maine stands with this.

Best of luck,

Tom in Colo