Automatic Mortgage Reaffirmation Question in Illinois

[mlopez60120]

I live in Illinois I filed for BK 7, 3 years ago. We included all debt including the house. We never singed any paperwork on reaffirming the mortgage. However we have made our payment.

My question is does this automatically make us reaffirm the loan? As of today they do not report my mortgage payment bad or good the mortgage is listed as BK. I just lost my job and I am thinking of a short sale cause I am upside down on the mortgage but my Realtor indicated that because I made my mortgage payment after BK that means I automatically reaffirm.

Any Advise ?

[keepmine]

Your realtor is wrong. If, you didn't sign a formal reaffirmation agreement, you have no liability for any dediciency balance.
Why the rush for a short sale? Just stay in the house until the foreclosure process runs it's course. It could take months or even years. Just bank that house payment.

[despritfreya]

Your realtor has a motive for giving you wrong info. He/she is trying to scare you into putting the property on the market. Remember, in a short sale, the only one who makes money is the realtor. As Keep says, "just stay in the house until the foreclosure. . .". Just be sure to continue to pay the HOA if you have one.

Des.

[bcohen]

As everyone else has already said: if you've lost your job, then your goal should be to maximize the amount of time which you can live in the house--payment free--until the mortgage lender eventually forecloses. If you do a short sale, then once the house sells, you'll have to move out and start paying rent to live somewhere else--which you may not be able to afford. Stay put, try to save up for when you eventually have to move, but try to drag it out as long as possible.