Another Question (Mortgage)

[Freddy03]

Oh this part is making me nervous -

If we are approved for 7 we are planning on keeping our home (not reaffirming it).

So what happens is the loan closed? So as long as I keep making my monthly payments they won't foreclose? What if I want to refinance down the road, can I?

I'm confused.

[HHM]

The loan isn't closed, per se.

Keep in mind, bankruptcy does not eliminate or extinguish a debt. Bankruptcy does not erase debt. A bankruptcy discharge is an permanent injunction against anyone from taking action to collect the debt.

If you do not reaffirm....

1. You can refi in the future. But realize, once you refi, that is a post BK loan, you are now on the hook if you default in the future.
2. As for foreclosure for failing to reaffirm, that is district specific. However, in most states, failing to reaffirm is not grounds for foreclosure.