Confused about home ownership after bankruptcy

[csonly]

Can someone please explain this to me...if we continue to keep our mortgage payment current during/after bankruptcy what does this mean? Do we still own our home if we continue to pay? We want to stay in our home and plan to do so. We have a 1st mortgage for approx 200K and a second of approximately 23K. With the current values, we are upside down by the amount of the second mortgage or maybe a little more. I'm totally confused after reading other threads. Also, down the road, say we want to refinance or move, how does the bk effect that? One more thing, if a few years down the road, we need to modify, are we able to do this? I've learned so much from this group, things I never even thought of before nor had my attorney told me any of this.

[dneil]

Hi. You still own your home just like you did prior to bankruptcy. As long as you pay on your mortgages, it is yours. You do not have to re affirm and the general consensus here is to NOT reaffirm because all it does is put you back on the hook to personal liability to the mortgage company. It usually takes 2 years after discharge before you can re-finance a home. Although the second you re finance the home you are "back on the hook". The bank might ask you to explain why you filed bankruptcy... they did when my husband went through a bankruptcy when he purchased his first home about 16 years ago.

I am not sure about a modification. That is probably better answered by someone more knowledgeable on this forum. Good Luck!

[lookingforward]

We were discharged in October of 2009. We did not sign any reaffirm papers. We have just been making payments as usual. We haven't heard a peep from the bank. Knowing that we did not reaffirm is a good feeling, anything could happen, and we can walk away if we have to.

[dneil]

lookingforward- I agree with you. Re affirming would be a foolish move. The mortage is in my name only. My husband is my second marriage. If he left me, I would not be able to pay my mortgage. It is great to know that I will not be personally liable for the mortgage debt if I have to hand my home back to them. Thank God for having the choice of not reaffirming! In fact, it was that reason *info on reaffirming a mortgage* that I found this site. This site has been a huge help in answering questions! :P)