Reaffirmation ... here we go again!!

[mknolan]

Reading over the documents and instructions from my attorney prior to my 341. He has in his instructions in BOLD You may reaffirm a house payment by signing a reaffirmation agreement, however, if you sign the reaffirmation you are legally obligated to keep making house payments and will be responsible for the debt in the event of a future foreclosure sale. If you do not reaffirm the debt on a house you wish to keep, you may keep the house but it will NOT be reported on your credit report as making mortgage payments which could affect your future credit. Simply, a Reaffirmation Agreement is a legal document stating that you will continue to make payments on the asset after your bankrupcy is complete.
1. I plan to keep my house
2. I have never been behind on my payments & don't plan to get behind
3. I'd like my credit report to reflect the positive in the midst of the negative aka Bk

What to do....what to do???

[PANSYFACE]

Don't do it. You never know what the future may bring.

[LadyInTheRed]

Having the positive payments on your credit report is not a good reason to reaffirm your mortgage.

[TRfromillino]

Well, for me, going thru this very same thing, I will tell you that it was not only confusing but nervewracking at best, to figure this out. What I finally did, was select the reaffirmation on my bk papers, mostly because my lawyer was sort of pushing me into it because I didn't want to surrender it. However, after all the help I've been given here, there's no way I'm going to sign them. As long as I stay current, I'm fairly confident they can't pursue me.

Given that, I have no idea what my lawyer is going to say when he finds out that I have no intention of reaffirming. He *should* back me up at the trustee meeting, but he may get all pissy about stuff too. But I'll handle it as it comes.

As far as the credit report is concerned, there's probably other ways of repairing it without saddling yourself with a mortage right after bankruptcy.

[NoMoreCards]

When I filed, I wanted to reaffirm my mortgage. I never wanted to lose my house, thought it was the best thing next to sliced bread. Lol! My lawyer strongly encourged not to. I still thought I should. I read on here all the reasons not to, and in the end did not reaffirm my mortgages.

I won't bore you with the details, but it became necessary for me to walk from my house. My last house payment was 4/2011, and just surrendered it to the bank 2 weeks ago. (legally I could have lived there until April 2013). I owed 185K on the first, 14K on the second and I was able to just walk away. No liability in regards to paying for the house. I ended up finding a foreclosure to buy, saved enough and was able to purchase it for cash.

When I left my house for the last time I was sad, tears actually. By the time I pulled into the driveway of my paid off house...the tears turned into a smile.
Had I reaffirmed.....I would have been screwed. See...the house I loved so much developed a problem. MOLD!! It was EVERYWHERE and growing and spreading fast. I could not even begin to imagine if I was legally responsible for the financial side of that house, in which it became unliveable.

I firmly believe everything happens for a reason, and I am thanking my lucky stars I never signed that reaffirmation. My entire financial future would have been much, much different. I would NEVER in a million years recommend someone sign that paper. Anything can happen, and it usually does when you least expect it!

[IBroke]

1. I plan to keep my house
2. I have never been behind on my payments & don't plan to get behind
3. I'd like my credit report to reflect the positive in the midst of the negative aka Bk

What to do....what to do???

You know, when I thought of this, I came to the conclusion that the lack of reporting in regards to rebuilding credit is not necessarily bad.

Here in Florida, you have the right to cure any default on your mortgage prior to a foreclosure. "So what does this have to do with reporting?", you might ask. Well, if you think about it, a lot.

Credit reporting is a double edged sword. It can work in your favor - but it can also be used against you to put you under pressure. Let's say the real estate market collapses once again in the future and you need/want a modification with better terms. You have been rebuilding your credit since discharge. In order to be seriously considered for a modification on your mortgage, you have to fall behind (aka. strategic default). Now, if you have reaffirmed, a strategic default would severely damage your credit rating. Guess what: If you haven't reaffirmed, your strategically missed payments mustn't be reported. Now isn't that great? You can put the lender under pressure by not paying and putting the money aside (in case they don't give you a mod, you can get current again instantly) in order to get a modification - and the lender can't report you late. Ha!

In case you need proof of your payments for a different, future mortgage, you can always show your payment-history by providing statements of your mortgage. The impact on your credit-score itself isn't that big, either. Actually, a secured credit card can do more for your credit than a mortgage. Keep in mind that a reported mortgage-debt has a negative impact on your DTI-ratios, too.

[pamkev]

Like others said don't do it.

[mknolan]

Thanks everyone!! I have made the decision and I will not be reaffirming my mortgage!! I truly appreciate everyone's input!! 341 is scheduled for 4/3 ... Tic toc!!

[TRfromillino]

mk,

you are a week before me for the 341! Let us know how it worked out for you and what was said when you say you're not reaffirming. It might help me out, cuz I'm not sure how much backing I'm going to get from my lawyer on that.

[Pizza]

Reading over the documents and instructions from my attorney prior to my 341. He has in his instructions in BOLD You may reaffirm a house payment by signing a reaffirmation agreement, however, if you sign the reaffirmation you are legally obligated to keep making house payments and will be responsible for the debt in the event of a future foreclosure sale. If you do not reaffirm the debt on a house you wish to keep, you may keep the house but it will NOT be reported on your credit report as making mortgage payments which could affect your future credit. Simply, a Reaffirmation Agreement is a legal document stating that you will continue to make payments on the asset after your bankrupcy is complete.
1. I plan to keep my house
2. I have never been behind on my payments & don't plan to get behind
3. I'd like my credit report to reflect the positive in the midst of the negative aka Bk

What to do....what to do???

He's spelled it out for you (and the rest of us)! Wise choice not reaffirming

[Drazil65]

I agree with all others, do not do it!!! I know you do not think you will never stop making payments and that you will NEVER not want to pay for your home etc., trust me you have no idea what the future holds for you and what position you will be in. I'll bet you never thought you would file bankruptcy either right??? People lose jobs, medical issues take over, poeple have accidents that prevent working, people get divorced or lose their spouses or a whole host of other "real life" situations...you have the chance to start clean and keep your house. With everything else you got going on right now (filing etc.) don't worry about your credit report, seriously...