Question about mortgage after discharge

[witchegirl]

I filed in February and was discharged on Tuesday (yay!). I reaffirmed my car and wanted to reaffirm my mortgage. I owe about what it's worth on the market, never missed a payment, and my lawyer said though he's never had anyone reaffirm a mortgage, if it was important to me we could so that I'd get the benefit of credit reporting.

Well, Ocwen wouldn't reaffirm my loan. I'm fine with that, but fully intend to keep paying my loan and I'm wondering if there's any point to trying to contact them now that I'm discharged to see if we can work something out where it can be all official again?

And since they wouldn't reaffirm, is there anything I need to be cautious of (other than paying on time of course!) going ahead? I guess I don't understand why they wouldn't reaffirm the loan, and I'm a little afraid they have something up their sleeve

[LadyInTheRed]

There is nothing unofficial about your loan. Ocwen did you a favor by not agreeing to a reafirmation. There is no advantage to reaffirming your loan and you can't reaffirm it after discharge.

Just make your payments on time and everything will be fine.

[tobee43]

welcome to the site witchegirl!

this is a first from what i have seen. a mortgage servicer or lender NOT wanting to reaffirm? wow. as lady points out they most certainly did you a favor since now that's it is not reaffirmed, if things go badly financially for your in the future you can just walk away. but i'm still very curious to know what they have up their sleeve?

[LadyInTheRed]

but i'm still very curious to know what they have up their sleeve?

Probably nothing up their sleeve. In Washington, a mortgage is only a recourse loan if the terms of the loan say it is. So, witchegirl's mortgage may not be a recourse loan and the lender doesn't want to devote resources to the reaffirmation process when it gives them no advantage other than the ability to report a default on the debtor's credit report.

Even if it is a recourse loan, in Washington a lender has the option of a judicial or non-judicial forecloure. To get a deficiency judgement, they must do a judicial foreclosure which takes longer and costs more money. This lender probably does not routinely pursue deficecny judgements. So, again, it's not worth devoting resources to enter into reafirmation agreements.

[tobee43]

Probably nothing up their sleeve. In Washington, a mortgage is only a recourse loan if the terms of the loan say it is. So, witchegirl's mortgage may not be a recourse loan and the lender doesn't want to devote resources to the reaffirmation process when it gives them no advantage other than the ability to report a default on the debtor's credit report.

Even if it is a recourse loan, in Washington a lender has the option of a judicial or non-judicial forecloure. To get a deficiency judgement, they must do a judicial foreclosure which takes longer and costs more money. This lender probably does not routinely pursue deficecny judgements. So, again, it's not worth devoting resources to enter into reafirmation agreements.

you have pointed out some excellent information. to me the most important and significan is, to understand that everything varies state by state. each state handles foreclosures differently, as well as filing for bk's. however, even for the few states that can pick and chose whether they prefer to use the judicial or non judicial procedures, one would still think a bank would welcome a reaffirmation. my understanding with the state of washington, are recently using the instruments of deeds of trust which makes it far easier to conduct non-judicial foreclosures, of course the non-judicial process is much more cost effective for the creditor. so that makes sense. not so great for the debtor, but lends itself to put the creditor in a better position.