Mortgage Company Won't Reaffirm

[awafan]

My mortgage balance is about $250,000. The value of the property is about $390,000. I have made every mortgage payment on time. I filed a no-asset chapter 7 bankruptcy in February and had the 341 meeting last month. So far the process has been smooth. After the discharge my only debts are going to be the mortgage, which is $2,200 per month, and a car payment of $305 per month. My monthly gross income is $8,500. I found out that the mortgage company, a credit union, is not going to reaffirm the mortgage. Why would they not want to reaffirm? Is there any sort of advantage for them to not reaffirm?

[justbroke]

There's no reason to reaffirm because you are not underwater and they retain all of the non-bankruptcy rights. That is, they still have the right to foreclose should you default on the terms on the mortgage security your note. In many cases, nearly everyone in bankruptcy does not reaffirm a mortgage. It makes no sense. Some debtors want to "positive" mortgage payments, but the bankruptcy is going to do more harm than not reporting the mortgage payments.

For them, they just don't need to do anything.