Pay & Stay question

[threnners]

I'm getting ready to finally file in May (since I've heard that's the best way to keep from losing your next year's tax refund.)

I would like to stay in my house for the time being. (I'm not behind, have never missed a payment because it's auto deducted by the mortgage company.) Will the mortgage co continue to auto deduct my payments? I know that in 3 years post bk I can get an FHA loan with a good credit history. So what happens when it's time to move? Do I just close and move into my new house and that's that for the old one? Will the foreclosure on the old house affect anything?

[SMinGA2]

Its impossible to predict what the mortgage company will do. After you file, you may need to contact them to find out how/where to make payments - because payments may be handled by another department while you're under bankruptcy protection. If you have the option to do free online bill pay from your bank account, they are not likely to refuse those payments. But again, you'll want to find out if the payment address changes.

If you don't reaffirm, but keep making payments, not much changes for all practical purposes for the time you want to stay in the house. You're not obligated financially to the loan but you are still on title. At some point, you'll either have to sell the house OR have a foreclosure for it to come out of your name. You might not be able to get a mortgage on another property unless you can qualify (for the new mortgage) based on both payments (new and current). There is usually a waiting period after a foreclosure before you can get another mortgage.