Reaffirming Mortgages

[rimi2001]

We are awaiting discharge this week. We reiceved a reaffirmation application finally from 1 Mrtg. company and they want it filed with the courts before the discharge, which is suppose to be Tuesday.

The other mrtg co. (2nd mrtg) tried to talk me out of reaffirming and still has not sent an application. Said they would not reaffirm since we were not current on mortgage at the time of filing. We never were behind on this mortgage, the payments were deffered due to Hurricane Katrina- which they allowed us to do obviously. She said she would send an application out to us and we still have never recieved it.

I am confused whether we are suppose to reaffirm or not. Isn't this a promise to continue to pay them back? What if we do not reaffirm. What will happens?

[bkadv]

I believe all mortgage companies has different requirements. In our case (ABN)
We were told that our payments must be kept current (not past due longer than 30 days), and a reaffirmation was not required. Should we default on our payment, then the mortgage company turns it over to their lawyers and we could be charged for attorney fees and lose our good interest rates.

[StaciMM]

If you reaffirm, you are contracting to be responsible for the debt/payments regardless of the BK. If you do not reaffirm, then the debt gets discharged. BUT to keep the property, you need to keep paying.

Not reaffirming has the advantage that if things change, and you need to move but can't sell the house then you can 'walk away' and not owe anything more.

[larryt]

Have a similar situation. We are awaiting discharge on a 7, we are not reaffirming our mortgage with BoA. We are 100K upside down. Was wondering if we should keep our payments current or stop paying and see if BoA would offer us a modification. Maybe a foolish question, but am so burnt out I cant think. We don't care if they take the house, but we are current and don't want to jeopardize the discharge, but need a mod. any info would be appreciated.

[newbie2]

Have a similar situation. We are awaiting discharge on a 7, we are not reaffirming our mortgage with BoA. We are 100K upside down. Was wondering if we should keep our payments current or stop paying and see if BoA would offer us a modification. Maybe a foolish question, but am so burnt out I cant think. We don't care if they take the house, but we are current and don't want to jeopardize the discharge, but need a mod. any info would be appreciated.

Hi Larry, this is a 5 year old thread. It is always best to start your own thread rather than to dig up an old one as things may be different now (and therefore, the advice.) Here is an excellent thread on why reaffirming a mortgage is a bad idea (it is a sticky post now at the top of this forum): http://www.bkforum.com/showthread.ph...-very-bad-idea.

[larryt]

thanks newbie2!

[justbroke]

I would absolutely not reaffirm the first mortgage. Especially if you have a 2nd mortgage that you are not current on! This is just a non-starter for me.