Already reaffirmed, but have questions

[Mom63]

Hi all, we are in the process of chapter 7 and the lawyer said we should sign the reaffirmation agreement on our home, which we did. I have read alot about reaffirming, etc. but still have questions. Our home is worth about 80,000 and we owe 50,000. If something happened and we couldn't pay our mortgage, wouldn't we be able to sell the home and pay off the mortgage and still be ok? I just don't understand what the difference is between reaffirming and not. I know it's too late for us now, but I would still like to know.

Thanks!

[Pizza]

Signing the reaffirmation leaves the mortgage exactly as it was before you filed bankruptcy.

You will be obligated to pay back it. Absent a reaffirmation agreement, you would not have that obligation.

Under either circumstance, you could sell it.

[AngelinaCat]

You still have the right to change your mind and rescind the reaffirmation as long as you are still in the active BK. Once you are discharged, it is too late.

[Pizza]

Also, it must be approved by the court. Some judges will deny reaffirmation agreements, since they are unnecessary for real estate and benefit only the creditor.