Mod after bankruptcy.. DO NOT WANT TO REAFFIRM .. how to make sure of this?

[Inca]

Greetings, I have successfully completed my 3 month mod payment period with BOA and they want me to sign some notarized documents.. how can I make sure that I am not signing anything that will reaffirm my loan? I do not want to tie myself to the house again if I don't have too. The economy is still crap and the future is still looking bleak.. so who knows what is going to happen.

Anyhow, and advice would be great as I DO NOT want to reaffirm my loan and really don't know what to be looking for to make sure that this does not happen.

[espo1357]

Greetings, I have successfully completed my 3 month mod payment period with BOA and they want me to sign some notarized documents.. how can I make sure that I am not signing anything that will reaffirm my loan? I do not want to tie myself to the house again if I don't have too. The economy is still crap and the future is still looking bleak.. so who knows what is going to happen.

Anyhow, and advice would be great as I DO NOT want to reaffirm my loan and really don't know what to be looking for to make sure that this does not happen.

Are you in a 7? Are you discharged? Need more information.

You can make sure by contacting your attorney.

If you don't want to tie yourself down to the home, then why are you paying? Just live rent free and walk.

Whatever you do, TAKE YOUR TIME before signing any modification. My greedy lawyer didn't tell me that my modification would push me into a chapter 13, when I qualifed for a 7 before the modification.

Don't make that mistake. If you can do a 7 and walk, then do that. Its just a house.

Gotta run. Let me know if this helped at all.

[Inca]

Sorry... more info added..

I already have filed for and have been discharged from a chapter 7 bankruptcy, it has been a year since I was discharged. I did not reaffirm anything in the bankruptcy. I stopped paying the mortgage and was almost foreclosed on in Decemember. They withdrew the foreclosure and offered me a 3 month trial period to see if I could make my new, lower payments. I did and they say I am approved for the modification, which dropped my payments $200. As long as I don't have to reaafirm my mortgage I don't mind paying them money for a house that is in my name, a house I can paint, decorate, and do anything I want to without worry (Renting sucks), so basically it will be like renting the house from BOA, and if I decide to stay then I will finish paying my rent in 30 years and own the home. But.. I do not want to Reaffirm the mortgage because if something happens in this unpredictable economy then I will be held liable for the debt on the house, which I am not liable for currently.

Has anyone been able to get a mod without reaafirming their loan? If I can get the modification without reaffirming that would be great, but I WILL NOT take the modification if I need to reaffirm the loan. I just want any pointers on what to look for to make sure I am not signing a reaffirmation agreement. What will the paperwork look like?

[Inca]

I looked over the documents that I need to sign and under "My representation and convenants I agree..."


H.) I was discharged in a chapter 7 bankruptcy proceeding subsequent to the execution of the loan documents. Based on this representation, Lender agrees that I will not have personal liability on the debt pursuant to this agreement.


Does this mean that I am still not liable for the loan even though I am modifying the loan? It does sound like it, but I would like a second set of eyes to look it over in case I am missing something simple....

[espo1357]

Inca,

What did the attorney say?

I think you are free and clear if you included your mortage in the BK.

[Inca]

Hello,

Yes I am definitely free and clear of the mortgage right now. But I have been paying a modification trial period to get the payment down, I am basically trying to stay in the home. You can do this if you keep on paying the mortgage without reaffirming the agreement. But.. I needed a lower payment so I have been doing the modification for a $100 decrease in payment a month. They want me to sign a modification agreement, and I suspect that this will tie me to the debt again, and I will be responsible for it.

I don't know what to do. I like the house. It is worth $50,000, but I owe around $120,000 on it. The new payments will be around $800 a month (less then most rentals of the same price). But I would hate to have something happen to my job further down the road in this economy and end up losing my job and then be sued for the mortgage I owe (garnishments). What do you guys think?

[espo1357]

Hello,

Yes I am definitely free and clear of the mortgage right now. But I have been paying a modification trial period to get the payment down, I am basically trying to stay in the home. You can do this if you keep on paying the mortgage without reaffirming the agreement. But.. I needed a lower payment so I have been doing the modification for a $100 decrease in payment a month. They want me to sign a modification agreement, and I suspect that this will tie me to the debt again, and I will be responsible for it.

I don't know what to do. I like the house. It is worth $50,000, but I owe around $120,000 on it. The new payments will be around $800 a month (less then most rentals of the same price). But I would hate to have something happen to my job further down the road in this economy and end up losing my job and then be sued for the mortgage I owe (garnishments). What do you guys think?

I don't care how much you like the home, you are underwater 70k, so you should walk.

You can just buy another property close by if you like the area so much. If you like the home so much, you can replicate it for much less than 120k!

Good luck.

[Inca]

I really don't have the money to buy anything right now... but I could rent. Would it be worth it to rent? If I had the money to buy one of these new foreclosed homes believe me I would...but I just can't do that right now.

[Inca]

I found something in the paper work.. it states.

E.) That the loan documents as modified by this agreement are duly valid, binding agreements, enforceable in accordance with their terms and are hereby reaffirmed!!


Sooo..... I don't like the last part. Are they trying to secretly sneak in a reaffirmation agreement in my loand modification documents?

[justbroke]

I found something in the paper work.. it states.

E.) That the loan documents as modified by this agreement are duly valid, binding agreements, enforceable in accordance with their terms and are hereby reaffirmed!!

If you are already discharged, that would be an egregious violation of the permanent discharge injunction! Punishable by an award of damages to the debtor!

There is no phantom "back-door" reaffirmation. It's unenforceable. As a matter of fact, if it's not on the official forms and executed prior to the case being discharged, it is invalid, unenforceable, and a violation. Your lawyer needs to be made aware of this!

[Inca]

Ok... I guess that I will be sending her the documents tomorrow. So it does then definitely sound like they are trying to reaffirm the loan through this modification? I was suppose to meet with the notary tomorrow but I guess I will cancel that and have my lawyer take a look at the document before moving forward with anything.

Thanks

[justbroke]

Well, they technically cannot do it through those papers, but those papers are, in fact, a violation as they appear -- from what you posted -- to be a reaffirmation.

[Inca]

Thanks for the reply. Ya... I copied it word for word from the document, that is exactly what appears. I am not going to reaffirm, I am out of the hole and am not going to dig myself back into the biggest debt hole someone can have, that would be a lose, lose situation for me. So if I stop paying again, will it take them another 6 months for them to foreclose on my property like it did last time? (well almost, it was pulled of the courthouse stairs at the last second.) Figure I could save even more money again.

[espo1357]

Thanks for the reply. Ya... I copied it word for word from the document, that is exactly what appears. I am not going to reaffirm, I am out of the hole and am not going to dig myself back into the biggest debt hole someone can have, that would be a lose, lose situation for me. So if I stop paying again, will it take them another 6 months for them to foreclose on my property like it did last time? (well almost, it was pulled of the courthouse stairs at the last second.) Figure I could save even more money again.

Ya, you should be good for several months. Call them and tell them you want the property even if you don't. Play games with them. They deserve it after getting bailed out with our taxpayer money.

[chicagoannie]

I found something in the paper work.. it states.

E.) That the loan documents as modified by this agreement are duly valid, binding agreements, enforceable in accordance with their terms and are hereby reaffirmed!!

Sooo..... I don't like the last part. Are they trying to secretly sneak in a reaffirmation agreement in my loand modification documents?

Oh My Gosh! Wow - that is unbelievable. You need to have your attorney look at this paperwork. Sounds to me like your ratfink mortgage company just violated the law. Don't sign it, obviously.