Any Risks to NOT Reaffirming Mortgage?

[my2girls]

We are about 20 days away for our discharge (hopefully). We received a notice from our attorney today stating we need to contact our mortgage co (Wells Fargo) as well as the 2nd lender (Citi Financial) to see if they require a reaffirmation agreement. We do not plan on reaffirming either based on the sound advice read here.

We are upside down by about $50K (or more). We are current on the 1st and about 2 months behind on the 2nd (trying to catch up).

My question is, as long as we stay current are there any risks to not reaffirming? We definately want to stay in the home.

[shark66]

You DON'T want to re-affirm, especially when the house is underwater. Why take on debt that you've fought so hard to discharge in the first place? It simply makes zero sense, period.

You may also consider stopping paying the second altogether based on particular circumstances of your case. If you owe more on first than the house is worth, just drop paying the second and start putting money away to settle with them somewhere down the line.

My $0.02 only...

Good luck to us all.

[Fallonedward]

This is what we did. We stopped paying on our 2nd on the the day we declared BK7 in Nov. of 2010. Here we are a year later and our home values have not really gone up.

We have stayed current on our first but due to hubby still not being able to find a full time job we still do not have the funds to save anything for our 2nd let alone for our rainy day fund. I figure it does me no good to worry about something I have no control over. Our house is 21 years old and in need of some serious updating and cosmetic repairs. We still owe $204K on our first and homes, at our age, in our area have been selling for between $198K and 230K. Most of the homes that sold at the higher end had recently been updated and all of the homes sold had finished and or finished walk out basements, which we do not have.

So I figure time will tell what will happen, so hubby continues to job search and we continue to stay hopefully everything will work out and we can get that fresh start.

[iv65536]

This is what we did. We stopped paying on our 2nd on the the day we declared BK7 in Nov. of 2010. Here we are a year later and our home values have not really gone up.

We have stayed current on our first but due to hubby still not being able to find a full time job we still do not have the funds to save anything for our 2nd let alone for our rainy day fund. I figure it does me no good to worry about something I have no control over. Our house is 21 years old and in need of some serious updating and cosmetic repairs. We still owe $204K on our first and homes, at our age, in our area have been selling for between $198K and 230K. Most of the homes that sold at the higher end had recently been updated and all of the homes sold had finished and or finished walk out basements, which we do not have.

So I figure time will tell what will happen, so hubby continues to job search and we continue to stay hopefully everything will work out and we can get that fresh start.

Vis-a-vis your second mortgage, you are in a pretty good situation; the second can foreclose if they want but at this time that right has no value.