What happens when they don't reaffirm, can you lose your house?

[jjwalker]

The lawyer said he would not reaffirm my house. I am not late and don't plan to be late on it. Everything i make goes to the mortgage.

I just don't understand the whole reaffirm thing, especially when it comes to a mortgage. If they don't reaffirm, can they force you to sell your home!!

Any help would be appreciated.

[debtisbad]

I talked to my atty about this today. He said with the new law, nothing is reaffirmed. I doubt they want your house. Just keep current with the payments. The mortgage company will probably contact you to reaffirm. I, however, am not going to reaffirm. I will keep making payments on time. HOWEVER, if the realestate market would bust, lets say, in 2 years, I could walk away from the house free and clear, because I did not reaffirm. I am personally just scared of this housing market.

[Minnymouth]

Under the new laws - if you and your lawyer make arrangements to reaffirm on a mortgage or debt - THEN the lawyer is also considered a co-signer now...............
thus holding him responsible if you don't pay.
SOOOOOO lawyers are not doing anything about reaffirming ANYTHING.
If you wish to keep your property YOU must make arrangements with the company yourself to continue payments. If they require an agreement from you in order to keep the property, you will have to sign it unless you can keep your payments current all the time.... and some will require it anyways, in order to keep the property or you will be asked to surrender it.
For more information regarding this read under "reaffirmation" in the Bankruptcy Manual on this forum.....

[debtisbad]

Minnie,

I did not know the lawyer would be considered a co-signer. This is all crazy. I am not reaffirming anyway, and at this point, if they want my house, they can have it! I wish I did not own anything anyway. The more you own in this country, the more they can take away. I guess I will just have to adapt to the adage "less is more!"

[Minnymouth]

Yes when the attorney signs the affirmation with you he is agreeing that you WILL PAY THE DEBT.... thus leaving himself wide open for a future lawsuit to collect from him... if you don't pay.....
Lots of people are not aware of this.... some attornies may not be....

If you want to keep your home - you contact the mortgage company and make arrangements with them......

If you can't decide right now - just keep your payments current on your home at all times, till you decide.
If you decide in the future to give the home up - then you can walk away, let them foreclose and owe nothing on the balance......

Hopefully the mortgage company will not force you to sign a reaffirm to keep the home as long as your payments stay current.....

Cheer up - life will get better after all this is over.....
Believe me...............and I have been thru the MILL!!!!!

So hang in there, be patient, look towards the future and set yourself some goals and work towards them.....


When your feeling down - chat with us!!!
Minny

[LostOne0069]

Don't you have to have the courts' approval to raffirm any debt?

As far as "not deciding now" if you don't officially reaffirm it and just pay the payments... even if the lender lets you keep it and keep making payments on it... don't you end up with a loan that is not reported to the credit reporting agencies?

My attorney is saying that he won't sign off on me reaffirming my vehicle... but I'd prefer to keep it. Can I reaffirm it whether or not my attorney "signs off" on it?

[Minnymouth]

If I''m understanding the new laws correctly, you are the only one that has to sign the reaffirm directly with the creditor now........ if the attorney signs, he's in a position where he's guaranteeing you will pay the debt......

If you don't reaffirm and just keep making current payments you can maintain your property as long as the creditors agrees. But they will not notify the credit bureau of you making payments any longer, because basically the debt has been discharged in bankruptcy.....

Your attorney can help you with the paperwork, but signoff on nothing, otherwise he could be liable..... Many will not even help with the paperwork of reaffirming - you have to contact the creditor and make arrangements...

Under the new laws, I don't know if you have to have the Courts approval or not to reaffirm.... Will see if I can find out something about that also.

Under the old laws, you had to reaffirm before the discharge date or it was discharged. But you could also keep paying on it (without reaffirming) and still keep it - yet walk away in the future (if you decided not to keep it) and still owe NOTHING.....

Will do a little more research on this.....

Minny

[robivi3]

If you are not late, they likely won't take it or refuse payment.

[poorme]

Wenderful - I asked that same question re mortgage as well as a repo'd car, both of which were discharged in my bk. Answers I got supported the fact that they can't report the repo or foreclosure sicne technically, the loan is 'gone' from you. One responder said they did enter the foreclosure on his cr, but he was able to get it removed as reporting inaccurately. Yes, the bank has to go thru the foreclosure in order to gain title, but it seems that you might escape having a reported foreclosure against you.

I would ask for Minny or others with experience to chime in for our benefit about this. Sometimes, the foreclosure filings are picked up from the courthouse by 3rd party hounds who send things to the cra's...so I'm going to press my lender to not report as fopreclosure and see what happens.

[Minnymouth]

Since its reported as included in bankruptcy - even if they foreclose on it now - it should and will still say included in bankruptcy. If they change it they are reporting incorrectly and it can be removed.
Also there should be NO 60 day late report either.
Keep an eye on the credit report.....

Minny

[debtisbad]

Minnie,

thanks so much. I am worried with gas going up and such that I may not be able to keep the house, though I current at the moment. I just know that I will not be able to afford the heat bills next winter. I want the ability to walk maybe in 1-2 years if the housing bubble bursts and not have it reported as a foreclosure. Sounds like since I am including in BK, if I keep current on the payments and do not reaffirm, that it will not look like a foreclosure. There is no way that I will reaffirm as I am too scared about housing prices and the economy. BUT, I just do not want another ding on my cr besides the BK. Also I am worried about renting in the future. I may move to another part of the US, and am worried that a foreclosure on my cr would keep me from being able to rent! This becomes overwelming to think about at times!

[debtisbad]

JJ,

I answered your pm. Just wanted to make sure you got it.

[Minnymouth]

Yeah, believe me, from experience, bankruptcy can be OVERWHELMING when it smacks you in the face......

You should be okay as long as all payments stay CURRENT..... until you decide what you want to do.

If in the future you walk away.... just let them foreclose on it...... and take it back.

Since its already discharged in bankruptcy, they cannot (should not) report it as a foreclosure. Keep an eye on the credit report, if they do, dispute it, letting the credit bureau look at report showing "discharged in bankruptcy". They will investigate and remove the foreclosure report.

Just hang in there, life will be better, takes time and patience.

You were talking about your heating bills. On mine since I'm on a limited income pretty much, I take an average of my yearly bills, and make that my monthly payment, no matter what the bill is. (and no I don't use level billing either thru the company). This leaves me with a credit balance each month that keeps building up. THEN in the winter months the bills are always covered by that same monthly payment, AND if an emergency came up and I'm short of cash, there's money on credit and I can go without making a payment for a month and the bill is still paid out of the credit balance. Kind of a safety net!! Works for me......

When renting if you rent from a private citizen they normally are not concerned with you filing bankruptcy. Also if dealing with a complex - if you offer 1st and last months rent, they will usually go ahead and rent to you.

Be patient and as time goes by, the bankruptcy will affect you less and less......

[Minnymouth]

WENDERFUL,

Well , don't know about me being "awesome" or "knowledgeable", but thanks for the compliment for an old lady.....

Been told that I am one of the "laidest back people" and "common sense person" that many of my friends have ever known.....

I'm deal with life with "the real world" in mind!! I can still "dream like a child", feel love and passion with a "young heart", and try to think and make decisions with an "educated and updated mind".............. Works for me!!!!

I love being on this forum, having the opportunity to offer suggestions, calm shattered nerves, and to help others experiencing the hardship of bankruptcy.....

Minny

[Minnymouth]