So how does this work?

[TRfromillino]

While signing my papers yesterday, the conversation returned to the 3 options for secured property, i.e. my home. (Lawyer insists that 'other' is for personal property only.) I was told my only options were, reaffirm and surrender. I asked if I were to reaffirm at this time, and then change my mind could I select either surrender or 'other' at that time then? No, surrender was the only option left.

My question, is this true? Why don't I get to have both choices? If you can help out on this, I'd sure appreciate it! Thanks!

[Drazil65]

You can put down that your intention is to reaffirm but then never sign the papers and "change" your mind at that time. We did that and then we just kept making payments and stayed current and never signed the papers for reaffirmation (our bank did not require us to sign them so we just did not bring it up again). I do not know why your situation would be different? I am sure some of the more knowledgable posters will step up with a better answer but this was how we did it.

[Pizza]

TR, I've been following your posts on this issue (I'm seeking the same outcome), and my opinion is that the communications between you and your lawyer are causing you a lot of grief over nothing:

I was told my only options were, reaffirm and surrender.

Have you actually seen the form? I went to the UScourts website to download a current SOI form, and there are two sets of options on it:

Property will be SURRENDERED / RETAINED, and...
If retaining, I intend to REDEEM / REAFFIRM / OTHER (EXPLAIN).

See: Statement of Intentions form from UScourts.gov

So I'm confused as to why your lawyer is bullying the reaffirm/surrender issue. It seems RETAIN and OTHER with "retain and pay" is a valid (and the best) option. I have not spoken with an attorney that has recommended a reaffirmation - in fact, it seems habitual for them to talk clients out of it. Popular opinion on law websites echoes that reaffirming a mortgage is never in your best interest, under any circumstance. And the court may not even allow it.

Have you sought a second opinion (from another attorney)?

EDIT: I added this image to show how this should look:

[TRfromillino]

Pizza,

I was indeed shown the document and I wanted to do mine just like the one you posted. However, I was told that according to their research, this option was only for personal property, not real. Obviously this is not something they've ever done with the bankruptcy cases they handle. They must go strictly by the book if they had to research it. I'm sure the secretary filed my case first thing this morning to keep me from changing my mind again...lol

[keepsmiling]

Just exactly how much BK experience does this lawyer have?

[Pjmax]

TR, I sort of remember reading your posts from somewhere, correct me if I'm wrong, that your lawyer is not a BK specialist. One advantage in having an attorney who specializes in BK, is that they are very familiar with what will fly in their district and with particular trustees. It's possible that sticking with this particular attorney may cost you.

[TRfromillino]

His secretary said they do a lot of bankruptcies. But he is older and perhaps stuck in his ways, and lil ole me is bucking the trend. I didn't have any choice but to stick with him because he was going to keep half of my fee, and I didn't have enough to hire a different attorney. If I can come up with $150, I'm going to get a consultation with a different attorney for her opinion. What the second opinion has to say will tell me what i can do.

The papers have been filed, 341 meeting already set, so I'm off to the races.

[Pizza]

Well, if you've filed, what's done is done (for now). But your attorney seems, in a word, confused. In one instance he's telling you that you've got to reaffirm; in another, it's not in your interest to reaffirm. You've got over $10k in equity, but the upcoming "balloon" is creating an upcoming hardship. Remember that the court has to approve any affirmation and that reaffirmation is not automatic (you have to sign papers provided by the bank before it's official).

[TRfromillino]

Funny you should say that about the court approving the reaffirmation. I questioned the secretary about whether or not the lawyer would sign any reaffirment with the bank and she said if I had my mortgage payment money at any time of the month, he would sign it! I said well cool, so what happens when I blow a tire on my car or my furnace breaks down? (God forbid!) I show a whole nickel of disposible income per month. That's generous. I don't know how in his right mind he would ever sign that document saying he approves with a clear conscience. I may be 'ok' today, but tomorrow is always an issue.

[AngelinaCat]

Many judges will deny the Reaffirmation as "an undue hardship" on you. If you have a balloon coming up, then yes, that can be an undue hardship. For some lenders that REQUIRE a Reaffirmation, your attempt to do so, will suffice. If the judge rules against it, the matter is out of your hands and out of your control. And the lender has no choice but to be satisfied with that.

[IBroke]

Many judges will deny the Reaffirmation as "an undue hardship" on you. If you have a balloon coming up, then yes, that can be an undue hardship. For some lenders that REQUIRE a Reaffirmation, your attempt to do so, will suffice. If the judge rules against it, the matter is out of your hands and out of your control. And the lender has no choice but to be satisfied with that.

Exactly.

My mum's attorney is going to select "reaffirm" as her intention on her mortgage as well - but he made it clear that in the end, such a reaffirmation is actually not an option in the first place since we are so far under water. He told us that he would gladly indicate "reaffirm" as intention but he would never sign the agreement and we both agreed that the judge won't agree on it, either. So deciding between "stay & pay" and "reaffirm" on the paperwork in regards to the question if there will be a reaffirmation in the end was a mood point.

I asked the attorney to select this option so that we could later claim that we always intended to keep the home under any circumstances - even if we had to go with an insane reaffirmation. However, being fully aware of the fact that a reaffirmation ain't gonna happen made this move much easier.

[Floridagail]

Hubby attorney did the same thing, it never came up at the 341, about reaffirming house or cars.