Help me with going over this one more time.. :)

[TRfromillino]

The meetings start at 10:00 am and I'm scheduled for the 11:00 session. I checked the other cases in my session time, 4 of us, 3 of us look like basic no asset cases but one had a creditor that filed for relief of stay. That one might be interesting if I get to see it.

[mknolan]

Hey TR ...I took the following information from my attorneys website, it may be of some help. Of course, you are in Illinois and I'm in NC so really not sure. I, like you, lost my husband to cancer, he was 49. I am still very nervous about my 341, if it weren't for this forum and all of the helpful information I would be a "basket case"!! I have a very good attorney and am feeling a bit better going forward!!

First, you must be current and stay current on your payments if you want to keep your home after filing bankruptcy. Even if you are one month behind, the mortgage company may file legal documents with the bankruptcy court asking for permission to foreclose on your home. This is called a Motion for Relief from Automatic Stay.

If you are making payments on a house you want to keep, you may sign a reaffirmation agreement; however, you are not required to sign a reaffirmation agreement to keep the house. There are benefits and drawbacks of signing a reaffirmation agreement.

If you sign a reaffirmation agreement on your home, you have obligated yourself to make payments on the house in the future. The mortgage company will continue to report your payments to the credit bureaus after filing your bankruptcy. If you make your payments to the mortgage company on time each month, you will receive the benefits on your credit report. However, if you sign the reaffirmation agreement and are unable to make payments on the home in the future, your credit will suffer from the negative reports and you may be held responsible for the mortgage debts if the house is foreclosed on in the future.

If you do not sign a reaffirmation agreement on your home, your payments will not be reported to the credit bureaus and it will show the debt on your house was discharged in bankruptcy, but you must keep making your house payments. As a result, your credit scores will not benefit from timely payments on the house. It may also cause some confusion when you try to refinance your house; however, this is usually easily overcome by requesting your payment history that will show you have made timely payments. If you are unable to make payments on your home in the future, you may not be held responsible for the debts on the house, since the debts were discharged in bankruptcy.

[TRfromillino]

Thanks MK! All my lawyer will tell me is that if I don't reaffirm, the bank will file a motion to lift the stay and pursue foreclosure. None of my 'worries' will be 'worries' if I sign the reaffirmation. lol

[mknolan]

If you don't sign and keep making the payments, it is my understanding from what I read, that the bank has no basis to pursue the matter. Of course your credit report won't reflect your timely payments and I recall reading here that even if you get one day behind (there is always a grace period) the bank can start the foreclosure process. This is all so confusing but I just try to keep educating myself before the 341 - this Forum is a godsend!! Wishing you lots of Good Luck!!

[tobee43]

you're credit will suffer whether you continue to pay your mortgage or not. you filed bk. it will be on their for 10 years come rain or shine. the bk on your report usually out weighs everything good on your credit. so, do think because you have always been current that it will help much to get another mortgage or a car loan. we have seen enough here on the forum to know that simply not true time appears to be the biggest healer of one's credit.

if you reaffirm and at a later time lose you job or your financial situation changes you cannot walk away. if you pay and stay you payments are usually still recorded as "on time" payments, however, if something changes in your life and you cannot pay any longer if you affirmed you are stuck and if you didn't you can walk.

[mknolan]

Thanks tobee - you said it in a nutshell!! Oh I am very aware that the Bk is no walk in the park and the black mark on my credit report will remain until I'm "old & gray" LOL!!! I have thought long and hard about the Bk route, even did the pros & cons - there were a lot of cons but the pros (in my case) outweighed the cons!! Have a good day....your information is priceless!!

[keepsmiling]

Thanks MK! All my lawyer will tell me is that if I don't reaffirm, the bank will file a motion to lift the stay and pursue foreclosure. None of my 'worries' will be 'worries' if I sign the reaffirmation. lol

Not only will we be virtually holding your hand at the 341, but we will be laughing with you when you tell this dingdong "I told you so". In fact, maybe you could post a pic of the look on his face

[tobee43]

Thanks tobee - you said it in a nutshell!! Oh I am very aware that the Bk is no walk in the park and the black mark on my credit report will remain until I'm "old & gray" LOL!!! I havie thought long and hard about the Bk route, even did the pros & cons - there were a lot of cons but the pros (in my case) outweighed the cons!! Have a good day....your information is priceless!!

well thank you but priceless LOL!! i'm not certain bout that. just hope it can help here and there. experience is the best test and actually, i wish i didn't have to experience half the stuffs i have been through to know what happens at the end. i think what i have learned the most; is tomorrow is another day and it will get better

[TRfromillino]

Funny thing, (not really, but kinda) is that I happened to take a look at the courts reaffirmation papers the bank is sposed to send out. As I scrolled down thru it, I saw an area that the bank fills in with my loan information and there was one line that asked for current market value. You know that the bank is going to use the appraisal that they did 2 yrs ago for the loan, while I'm using last years real estate value. How much ya want to bet that my lawyer doesn't even see that? And he's signed off on them already and I should have them in my possession tomorrow or the next day. I won't know whether to laugh or throw something! lolol!