Did not reaffirm mortgage but looking for a little advice

[Beachlover2]

No sure where to place this as it could be Chapter 7 and Mortgage.

Okay, June 1 started a new job. Payroll period are goofy, 3 business days after 15th and 3 days after the last day of the month. I was not aware of this until my first day. Needless to say that I have not been paying my mortgage on time. I am running a month behind. My mortgage company was First Horizon (whom I might add sent me statements every month and them and Metlife were my servicer/owner during my Chapter 7), I would call them every month on the 15th and explained my situation every month and they were cool with it. No phone calls or letters. My mortgage was recently sent to Nationstar as of September 1st, I made my August payment Sept. 15th, they wanted to put me on a payment plan which is 300 more a month. No can do. I explained we mostly likely will be caught up until income tax time which would be like February. I will continue to pay them along with the late payment but until I can get caught up that's the best I can do. I don't dge them nor ignore them. Today I get a letter the dreaded NOD and a certified letter from the post office, which I did not go get. They are closed when I get home from work. Any advice is greatly greatly appreciated.

[maddog2112]

That`s probably just a standard procedure, which automatically sends out a notice of deficiency when your payment is late. Just try and catch up as quickly and as best as you can to avoid late payments. I wouldn`t worry about it. The bank doesn`t want your house, unless it`s worth many more thousands than you owe. Even then, I`m sure it would be a very tough process to foreclose unless you were extremely behind in payments.

[Beachlover2]

Thank you for making me feel better. I actually emailed the person I have been dealing with at the mortgage company and his email's keep coming back to me. Hmmm, I am guessing he not longer works there. I am going to call them when I get though, I have no intention of not paying my mortgage, just cannot seem to get on a system to get caught up. I am running roughly a month behind, I am paying it every month, but for the previous month. I highly doubt my house is worth thousands more than what I owe, nothing put down as it seemed to be the norm back in 2007. I just get stressed out getting a letter like that after reading so many horror stories with banks. Thanks again for your response. I will let you know what they say.

[maddog2112]

Beachlover2, relax. All will be fine.

[Beachlover2]

Got a call from my mortgage company last night, they want to email me some sort of agreement to add the past due amount (30 days) at the end of our mortgage. They said they were sending it today, hmmmm still have not received it. We did not reaffirm and already have a loan mod. Any thoughts or suggestions?

[LadyInTheRed]

Sounds like a good solution. Read the agreement carefully to make sure it will remove the loan from default status and that it is not a refinance.

[Beachlover2]

my mortgage company also mentioned something showing it as "current" on my credit report, as of last year when we were discharged our previous mortgage company was not reporting it. I was also thinking about having the atty that did our bk review it also if and when I get it.

[HomeNow2]

DO NOT sign papers stating that you will take on the debt. Watch a little Suze Orman (Financial Fright Night from her Halloween special around the 45 min in mark.....let them have the house since you are upside down!!!)

In the meantime, live there as long as you can without payments. Hmmm, look up the HampsterWheelgame.com and play along!!!!

~HomeNow2
4 months of non-payments post BK7
NO intentions of signing up again for that debt since the house is upside down ~$100K!!! Instead, getting our own 'bailout'

[LadyInTheRed]

DO NOT sign papers stating that you will take on the debt.

The mortgage was discharged. The only way to become personally obligated to pay the mortgage is to refinance the property. Signing an agreement to add the overdue amount to the end of the existing discharged loan will not reinstate the personal liability. You can't reaffirm a debt after discharge.

[Beachlover2]

Oh so in order to reaffirm, it would have had to be done before discharge?

[LadyInTheRed]

Oh so in order to reaffirm, it would have had to be done before discharge?

Yes.

[Beachlover2]

Lady in Red, here the cover letter and authorization. Any thoughts out there to all, please let me know.

"This letter is to inform you of the requirements to complete your extension.

Enclosed is the agreed upon extension agreement for your mortgage. All parties defined on the signature line of this extension agreement must immediately sign the agreement. The extension agreement must be received by 11/10/2011

Complete the following steps to finalize your extension. Immediate action is required.

• Must Sign
• Fax document back to
• Or email to :

Please note failure to have this document signed by the designated date will nullify this transaction. In addition all terms and conditions contained within this extension agreement must be performed and executed timely to keep your modification in force within the timeframe on this agreement.

Mortgage must receive your qualifying payment by the agreed upon date to complete your extension.

PAYMENT WORKOUT AUTHORIZATION

hereby agrees to defer collection of accrued interest for 1 payment(s) or the month(s) of 10/01/2011 until the earlier of: (I) full payoff of the loan amount, (II) the date of the last monthly payment due under the terms of the Promissory Note and Mortgage or Deed of Trust applicable to the referenced mortgage account number, or (III) acceleration of the debt pursuant to the Borrower’s default under the terms of the Note, Mortgage or Deed of Trust. The interest deferral will not be processed until Mortgage has received a signed copy of the Payment Workout Authorization, in addition to, a payment in the amount of $. also reserves the right to reverse the deferred accrued interest amount in the event the payment received is returned for any reason including but not limited to, stop payment or insufficient funds. has provided prior Payment Workout arrangements on the following dates: na.

The amount of accrued interest that is deferred will appear on Borrower’s monthly billing statement until paid. Borrower has the option of paying the deferred accrued interest amount at any time.

As a result of this deferral YOUR NEXT SCHEDULED MORTGAGE PAYMENT WILL BE DUE ON 11/01/2011.

***** Except as specifically provided herein, Borrower reaffirms all terms contained in the Promissory Note and Mortgage or Deed of Trust applicable to the referenced account number, which are incorporated herein by reference. All references to Borrower shall include all signers and obligors to the mortgage loan. *****This last part is what really concerns me the most.

If your loan is an Adjustable Rate loan, Borrower(s) hereby acknowledge(s) that any interest rate or payment changes currently in process may be rendered inaccurate by accepting this extension.

Borrower should retain a copy of this Payment Workout Authorization for your records.

**Deferring Accrued Interest amounts until a later date may result in a larger final payment than specified in your note."

[LadyInTheRed]

It says that the next payment is due on November 1. That should be fixed.

You could draw a line through "Except as specifically provided herein, Borrower reaffirms all terms contained in the Promissory Note and Mortgage or Deed of Trust applicable to the referenced account number, which are incorporated herein by reference.", sign it and return it.

Even if you don't strike the language, it isn't enforceable because you can't reaffirm a debt after discharge. The biggest risk of signing the agreement without striking the language is probably that the lender will ignorantly think it got you and later try to sue you for a deficiency if you default. It could be a big hassle, but in the end you could end up getting awarded damages for violation of the permanent injunction against attempting to collect a discharged debt.

Reaffirmation agreements are covered by Bankruptcy Code Section 524(c):

(c) An agreement between a holder of a claim and the debtor, the consideration for which, in whole or in part, is based on a debt that is dischargeable in a case under this title is enforceable only to any extent enforceable under applicable nonbankruptcy law, whether or not discharge of such debt is waived, only if—
(1) such agreement was made before the granting of the discharge under section 727, 1141, 1228, or 1328 of this title;
(2) the debtor received the disclosures described in subsection (k) at or before the time at which the debtor signed the agreement;
(3) such agreement has been filed with the court and, if applicable, accompanied by a declaration or an affidavit of the attorney that represented the debtor during the course of negotiating an agreement under this subsection, which states that—
(A) such agreement represents a fully informed and voluntary agreement by the debtor;
(B) such agreement does not impose an undue hardship on the debtor or a dependent of the debtor; and
(C) the attorney fully advised the debtor of the legal effect and consequences of—
(i) an agreement of the kind specified in this subsection; and
(ii) any default under such an agreement;
(4) the debtor has not rescinded such agreement at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of rescission to the holder of such claim;
(5) the provisions of subsection (d) of this section have been complied with; and
(6)
(A) in a case concerning an individual who was not represented by an attorney during the course of negotiating an agreement under this subsection, the court approves such agreement as—
(i) not imposing an undue hardship on the debtor or a dependent of the debtor; and
(ii) in the best interest of the debtor.

ETA: I just noticed this part:

An agreement between a holder of a claim and the debtor, the consideration for which, in whole or in part, is based on a debt that is dischargeable in a case under this title is enforceable only to any extent enforceable under applicable nonbankruptcy law,

It concerns me because I have no idea what nonbankruptcy law would apply. I wouldn't sign without striking out that text unless an attorney told me it was okay to do so.

[Beachlover2]

LadyInTheRed, Thanks soooo much for your input, I thought about also crossing out the above language that concerned me. As I mentioned I forwarded this to the atty that did our BK but highly doubt I will hear from him. Most likely we will not sign it as I don't feel comfortable whether I cross the language out or not. I have been in touch with them regarding my situation and have been honest, I have not been ignoring them. The funny thing is the last conversation I had they said that it would then be reported to the credit bureau as "current", I know for a fact last year around this time, it was not being reported. Also, I do not even have on line access to our account ("due to your bk"), I also never receive monthly statements either. Yes I know I am behind 30 days, but as I mentioned to them every month "I will get caught up when I get my income tax refund." Can't they just leave me alone.

[Beachlover2]

Just emailed mortgage company and advised them we would not be signing the agreement, we have not heard back from the atty and probably won't that did out bk, so I don't feel comfortable signing anything related to my house (since we did not reaffirm it) without discussing it with him.