Confused about Reaffirmation

[xtremconfuse]

Need advice,
Current on loan and lawyer advice is not to reaffirm. Live in CA and would like to know the ramifications of not reaffirming the mortgage? Will the bank try to sell or foreclose?
We owe more on the home than it is worth.. In an interest only loan and tried to work with the bank to do a loan mod but luck so here we are filing bk now

[flyinbroke]

Don't know much about housing as I don't own but am inclined to agree with lawyer. You had an interest only loan; you have absolutely no equity in this house. You cannot afford this house if you are using interest only (my personal opinion.) Interest only loans mean you may as well be paying rent.

Not reaffirming means you surrender the property back to the bank.