Why would he say to reaffirm the mortgage?

[NewPage]

I've read and re-read the sticky on this topic, so I'm not understanding at all why my attorney (we met briefly for the first time today) would say to reaffirm the mortgage when everything I come across says not to. He explained it, but we talked about a lot of things, so I can't remember everything! Here's the scenario:

We live in Oregon. I'm married but filing alone. Our only joint debt is the house and HELOC. We are current and will stay current on both. After reading here, my husband and I had decided I would not reaffirm on the mortgage or HELOC. Today my attorney advised me to reaffirm on the first mortgage but not the HELOC. I understand his reasoning on not reaffirming the second, but not the reason for doing so on the first. Can anyone explain to me why he might suggest that?

Another thing. He said that when a BK is filed, often statements stop coming and/or automatic payments stop being withdrawn. I understand why that would apply to me, but wouldn't my husband still get that communication, since he is on the loans and not filing?

[scorpion35]

once the automatic stay kicks in no more online access,no more auto payments .they will send u paper statements .u will have to either mail the payment in or pay at a branch

[keepmine]

First of all, if you don't understand what our lawyer is suggesting, don't be bashful. Call him and ask for clarification.
Once the bk is filed, the automatic stay goes into affect and a lender can't just proceed with business as usual. Debiting an account included in bk violates the automatic stay.
Your need to contact the lenders bk dept. and find out how to send payments.

[tcreegan]

Hi NewPage,

apply to me, but wouldn't my husband still get that communication, since he is on the loans and not filing? ....I'll bet they aren't sophisticated enough to pick up on the 'you filed, he didn't' scenario. You can always contact them, if you ask they can send 'information only ' statements and restore online access.

I've seen many posts where attorneys are big on the reaffirmation angle, not sure why...it's not a good option if it can be avoided. The advice to keep the 1st mortgage and discharge the 2nd usually works when there is not enough equity after the 1st to pay the 2nd. The 2nd becomes worthless and can settled for pennies on the dollar. But...that won't work if you file w/o your spouse...he would still be liable for the 2nd (and 1st too)

Good luck getting your case together, hope it all works out for you!

Tom in Colo