Reaffirming Mortgage and Cars

[kbaker121787]

Our attorney has advised us to not reaffirm our cars and mortgage-he said as long we keep payments current no one will take the cars or house. I almost want to reaffirm my husbands car to show something positive on our credit post BK since he drives them until they die (he has a 2012 Focus (financed with GM Financial) with only 28k miles) and does not drive it every day since he has a company provided work truck. My car is a 2013 Dodge Journey (financed with BB&T) that I have put 36k miles on in 14 months and we typically replace my car before the factory powertrain is up at 100k miles (we never have good luck after a warranty expires and my car is the family driver). So all I have to do is call the bank when we want to replace it and they will just come get it with no additonal black marks on the credit?
Now when we go to sell the house in a few years (financed with WF)--will we be able to sell with no issue and still keep the money made off of it?
Anyone with experiences in these situations?

[justbroke]

Please do not worry about your credit! It's already "toast" at this point with a bankruptcy on the report. No one will even notice the car was IIB (included in bankruptcy). In fact, if your pre-bankruptcy car payment history was excellent, your post-bankruptcy car history will be very good if you give it 6-12 months after bankruptcy. I received a post-bankruptcy car loan from Navy Federal at 4.9% just 6-12 months after discharge.

When there is absolutely no "legal" reason to reaffirm a car or mortgage, then there is NO reason to reaffirm a car or mortgage (period).

[kbaker121787]

So when we decide to replace the car all I have to do is call the bank & they will come get it?

[bcohen]

There is no need to reaffirm your car loans or mortgage, and doing so does NOT guarantee that you will receive positive credit reporting, or any other benefit. As long as you pay off the car loan or mortgage, you will still receive the title or deed, and you will be able to resell the car or house and keep the proceeds.

[LadyInTheRed]

So when we decide to replace the car all I have to do is call the bank & they will come get it?

Yes. You don't even need to call them if you don't want to. They'll come get it eventually. You will probably be able to save a payment or two for a down payment on the new car.

If you have equity when you are ready to replace it, you can sell it or trade it in.

[kbaker121787]

What about the house? Will we run into problems when we sell it & move? We plan on living here for a couple more years then getting a bigger house. We will have equity when we sell

[Drazil65]

Read the sticky at the top regarding reaffirming mortgages...then read it again!!! Please do some research and read everything you can about reaffirming homes and cars, have to agree with everyone else, no reason to reaffirm.

[LadyInTheRed]

What about the house? Will we run into problems when we sell it & move? We plan on living here for a couple more years then getting a bigger house. We will have equity when we sell

It will be exactly like selling the house if you did reaffirm. The mortgage will get paid off in escrow, commissions and other expenses of sale will get paid, and you'll get what's left.