I just filed, do I reaffirm....?

[metissacana]

Hi all,

I am new to the Forum, I file BK on 4/27/14 and had my 341 meeting on 5/30/14 that went well (2 minutes).
I have 2 cars that I will not be reaffirming and did not get any paper work from my Credit union about reaffirminh.

I have my house that I bought in 2012 and currently owe about $112000 and it is valued at around $155000. So decent equity here.

Do you guys think that it make sense for me to reaffirm the house since I am planning on staying there?

Wells Fargo sent me the reaffirmation paperwork today and I am about to sign it.

My terms are $1100 monthly and 30 year 4% fixed rate.

[metissacana]

Hi all,

I am new to the Forum, I file BK on 4/27/14 and had my 341 meeting on 5/30/14 that went well (2 minutes).
I have 2 cars that I will not be reaffirming and did not get any paper work from my Credit union about reaffirminh.

I have my house that I bought in 2012 and currently owe about $112000 and it is valued at around $155000. So decent equity here.

Do you guys think that it make sense for me to reaffirm the house since I am planning on staying there?

Wells Fargo sent me the reaffirmation paperwork today and I am about to sign it.

My terms are $1100 monthly and 30 year 4% fixed rate.

[justbroke]

There is no reason to ever reaffirm (a mortgage). However, some people that wanted to refinance in the future, ran into some obstacles with a non-reaffirmed mortgage on the property. Your mileage may vary. I still think that one should never reaffirm a home. You just never know what could happen in the future, including job loss, injury, or other loss of income.

Of course, it is always up to you.

(Also, I deleted your (exactly duplicate) post in the other thread. The other thread is very old (over 1 year old) and, at BKForum, we do not like old threads to be re-opened unless a substantial related issue appears and needs discussion within the same context. As you may have read in the other thread, there is really no reason to reaffirm a mortgage.)

[metissacana]

Thanks JustBroke.

I just have a decent equity here and also will have a lot income left after surrenderring my cars.

We purchased the house brand new 2 years ago.

[metissacana]

I will be getting a 2 cash cars

[Greysky]

Mettis I agree with JB. Don't reaffirm, just stay and pay. Our situation was a little different since the house did not have any equity but when my wife was offered a better higher paying job in another state we were free to move without any recourse. We could not have been so flexible if we had reaffirmed. Bottom line is life happens, keep your ability to roll with it without being constricted by the bank.

[justbroke]

Famous last words. Re-read the thread mentioned earlier for the first post from desprifreya (who is a practicing attorney and frequent visitor to this board). Everyone has good intentions.

While nothing repeats itself here at BKForum, let me just say that... there is absolutely no reason to reaffirm a debt unless legally required.

[AngelinaCat]

Greetings Metissacana, welcome to the forum.

I moved your question into a thread of it's own so that it will be better seen and responded to.

To answer your question, we here at the forum generally recommend NOT reaffirming any mortgage, especially one for a house. The reason is that there are too many variables that can happen in your future, and you may be stuck down the road with a debt you cannot pay but would still be liable for. By not reaffirming, if something happens that you need to walk away, you can do so.

Please review the following thread started by our member, Despritfreya. He/she is a practicing BK attorney in Arizona, but the same principles apply everywhere:

http://www.bkforum.com/showthread.php?62833-Why-reaffirming-a-mortgage-is-a-very-very-bad-idea

[AngelinaCat]

Okay, Metissacana, apparently you have asked this question before and in multiple places. Please do not do that. It makes it very difficult for the members to follow and answer your questions. For that reason, it is against Forum Rules for you to post multiple threads, or tag onto the end of older posts. Please take a few minutes to review the rules:

http://www.bkforum.com/announcement.php?f=3

Thank you!

From the responses you have gotten in the posts I have moved, I would say your questions has been fully answered. If you do not like the answers you were given, please do not rephrase and ask them again in a different way; our responses will not change.

Since you have now been warned by two moderators, any further such activity may result in you being banned.

Thank you for your understanding. My best wishes to you.

[TXskyblue]

OP, I was in the same boat as you. Owed significantly less than house was worth and planned to stay. Still, I did not reaffirm. Has not been an issue at all, but I have not tried refinancing.

[brokehmowner]

OP, I was in the same boat as you. Owed significantly less than house was worth and planned to stay. Still, I did not reaffirm. Has not been an issue at all, but I have not tried refinancing.

Do you have to reaffirm to refinance? Or does that make a new debt not under the bankruptcy? I have a decent rate from a modification, and I'm still underwater anyway, but just wondering if that makes me responsible for the house all over again if I were to ever re-fi.

[justbroke]

A modification can NEVER make you liable for the debt. There are only two things that can do this. The first is a reaffirmation. A reaffirmation is done prior to discharge and is a multi-page document. The second is to refinance. A refinance of the debt is also multiple pages and you'd know if you're refinancing.

A modification could never resurrect the debt; even if the lender, or debtor, "believes" that it would un-discharge a discharged debt.

I would take a modification as a gift if the underlying debt was already discharged. You have the best of all worlds! No personal responsibility for the debt, with the lender modifying the terms by reducing the interest rate, principal, or lengthening the term (or re-amortizing)

[TXskyblue]

Do you have to reaffirm to refinance? Or does that make a new debt not under the bankruptcy? I have a decent rate from a modification, and I'm still underwater anyway, but just wondering if that makes me responsible for the house all over again if I were to ever re-fi.

Maybe.

I tried to refi my car (not reaffirmed) and was approved and everything was going swimmingly until they called my lender and found out I did not reaffirm the loan. It makes zero difference, but they refused to refi me. I tried to talk to them, but the only word they knew after that was, "no."

Back to the house, I have not tried refinancing yet because no one seems to wants to touch a mortgage refi until 2 years post chapter 7. I have read on here that some people have had trouble with refi and not reaffirming, so it may or may not be an issue.

Is your rate that terrible? Mine's a little high, but I don't owe very much on my house. I'm thinking that by the time 2 years rolls around, I won't owe enough to make a refi's fees worthwhile.

[Drazil65]

Just like you thought you could handle the house when you purchased it only 2 years ago and look where you are today. Bet you never thought you would be here in 2 years right? Well life happens and we all have good intentions to do the right thing. You cannot know what your equity will be forever and many, many people learned the hard way on that one (do not count on that as your nest egg for the future). You may get a better job opportunity and need to move or there could be medical issues and you need to move etc, point is this is a chance to live in the house but have the option to walk away if needed or want to at some point. Its one of the byproducts of chapter 7 that can help with your future options and make things less complicated should you need to move.

[brokehmowner]

Maybe.

I tried to refi my car (not reaffirmed) and was approved and everything was going swimmingly until they called my lender and found out I did not reaffirm the loan. It makes zero difference, but they refused to refi me. I tried to talk to them, but the only word they knew after that was, "no."

Back to the house, I have not tried refinancing yet because no one seems to wants to touch a mortgage refi until 2 years post chapter 7. I have read on here that some people have had trouble with refi and not reaffirming, so it may or may not be an issue.

Is your rate that terrible? Mine's a little high, but I don't owe very much on my house. I'm thinking that by the time 2 years rolls around, I won't owe enough to make a refi's fees worthwhile.

My rate is not that bad, 4.65. We are on a mod.