What is a Ride-Thru and will it work for us? (CH 7 and looking for a loan mod)

[novemberbg]

Hi Everyone
First posting!

My husband filed for CH 7 in May. (he filed seperately as the CCs and our house is in his name only).

We are still in the midst of the ch 7 not discharged yet..BUT our major issue is our house.

We started the loan mod with Chase back in Feb and then filed Ch 7 in May. (this was prob. not the best idea at the time..)
So after faxing our paperwork to Chase 12 times in 5 diff departments we still dont have an answer. We are now with the Exec team at Chase (in the BK dept)

House details:
Paid 806k
Broker Price Opionion is 525k
Owe 698k
Payment is 3700. We are looking for a loan mod that includes a principal reduction (i know, fat chance) and to get our payment down to 2900-3000 (P,T,I)

We are totally undecided what to do about reaffirming the mortgage. Husband thinks its stupid to reaffirm bc its so underwater but we LOVE our house love our neighborhood. Plus if we were to rent we would have to spend about 3k a month anyway and we wouldnt get the tax breaks.
We have 4 kids (2 are still babies) and moving us would be expensive and a nightmare!

I have heard recently of a ride-thru. Where you dont reaffirm or affirm you just do nothing. I am wondering if that means we just keep paying and then after the discharge and years from now if we are still underwater we can still walk??

Anyone have any advice? Im so overwhelmed with stress and worry all the time. I wish we could just get an answer from Chase about the loan mod. Husband has a good paying job and they are stupid to let us walk and get this asset back...why don't these banks see that!

Thanks so much!

[Hodgini66]

I read about this practice as well, some people appear to be doing it successfully.

As long as you don't reaffirm, Chase is motivated to act.

If its that far upside down, they ARE motivated.

As long as you don't pay them, they are even MORE motivated.

SPECULATION: They MAY be trying to find buyers for your Note. (THEORY) I believe the shell game now being played is gather your data, pass it along and shop the Note around, with the attached "How collectible are the holders?" data we willingly supply them when asking for a Mod. See SoCalGal's thread for her nightmare.

I'm still uneducated on the BK aspect but in MY case (upside down $400k+), I definitely wouldn't reaffirm.

From what I HAVE read, the "To Reaffirm or To Not Reaffirm?" dilemma is partly decided by whether CHASE is willing to offer you a NEW LOAN (after NOT reaffirming).

From what I read, if you reaffirm, it CAN be modded BUT you start all over. If you DONT reaffirm, the old loan has been discharged and therefore, must be replaced with a new loan.

If this is true, CHASE is in the Driver's seat.

Your BK timeline is tantamount to the decisions. Chase MUST be made aware of the deadlines for reaffirming and discharging, so the burden is placed in their lap.