home reaffirmation: change of terms?

[ozarkmiss]

Has anyone ever changed the terms (gotten better rate) during bk?

background: we are well into our c7 - already got report of No Distribution. I got the paperwork to reaffirm the home. The rate is the same it was when we signed it, but very high considering today's market. Also I noticed that it was changed to variable interest rate, when the original was fixed. Before I get flamed for reaffirming, it's a small note. We have about 75% equity in the property. Plus, I'd like to start building up the credit scores going forward.

Not sure I have much muscle to approach the bank, b/c of my low credit score at the moment, but it just seems like a good time to try. Curious if others have walked in my shoes already.

TIA,

[tcreegan]

Hi Ozarkmiss,

No flames here, protecting a large amount of equity is a valid reason to reaffirm. You still have time, I would send back an offer...meet them halfway on the interest and make it fixed. Put some pressure on them, tell them time is short and this needs to be done ASAP to get it filed. Worst case scenario demand the original terms.

Tom in Colo

ps: a lender will cut off reporting to credit bureaus when you file, if you reaffirm or are just making payments on time anyway, ask them to start reporting again. A nice letter usually works well.

[ozarkmiss]

I nominate Tom in Colo for Chief of gracious advisors.

[tcreegan]

....awww shucks...thanks ozarkmiss!

[ozarkmiss]

So I spoke with the regional bank that holds our mortgage about changing the terms... they seemed scared to death to do anything that the judge might construe as improper. He said he WOULD look into it if I insisted, but he would have to pay a lawyer to handle the docs considering it's in BK and those fees would come from us one way or another. I agreed with him that we should stick with status quo for now.

Just reporting back for archive sake to the site.