Reafriming summary?

[psx402]

So in summary this is what I have collect form not reaffirming a mortgage in bankruptcy.

1) Stay current, stay in the home. “Pay and stay” or “Ride through" However your credit report after bankruptcy will show discharge.
2) Even tho you have a discharge shown on your credit report you can still claim the interest on your taxes.
3) Your escrow payments are still made for property taxes and insurance
4) After about two years you can apply for another mortgage for another house. The new mortgage will show the past mortgage as a discharge, meaning your current income to debit ratio has increased because the discharged mortgage is not being reported to your credit report.
5) Once you have a new mortgage on new home you can walk away from the home that you had discharged thru bankruptcy. Once you walk away from the house you can not be sued for anything related to the diference from an auction to the loan value you had.

Here is where its gets dicey, and I’m not sure what happens after you walk away from your home or deed in leu. Will you have another report made on your credit report showing a foreclosure on a mortage that was discharged? If this is true this would be the only negative

[tcreegan]

Hi psx402,

Sounds like you got it all down, just be sure to verify that the escrow payments are still happening.

The post-discharge foreclosure/short sale/deed-in-lieu may be reported to the credit bureaus but it would not be a huge stretch to get it removed and "included in BK" notated instead.

Good job psx402!

Tom in Colo