Should we Reaffirm our primary residence?

[PoorNow]

We have a mortgage that we are upside down on, but we are current on the payments and plan to live here indefinitely and keep paying the mortgage. My question is, should we reaffirm it? Can we just do nothing, file no forms about it and keep paying it on time and just go on like we are? Im worried that if we dont reaffirm, they will still foreclose on the house. But then since its upside down, the bank doesnt really want it back anyways, do they? Especially if they are getting paid.

[justbroke]

Technically they can't foreclose unless you have defaulted under your State's non-bankruptcy laws. In general, most people can select that they want to reaffirm on their Statement of Intentions, but never actually reaffirm the debt. That allows you to "pay and stay" (although some Districts allow you to actually put "pay and stay" on your Statement of Intentions).

In the 11th District Circuit of Appeals (Georgia, Alabama, Florida), there is technically no "pay and stay" option. However, people do this all the time, including myself! It's only when a creditor complains that you didn't choose surrender, redeem or reaffirm that it becomes an issue. I have only read one case this year in Florida like that.

So, because you are underwater, I would strongly ask you to rethink any reaffirmation of the mortgage. Pay and stay would work just nicely!

[PoorNow]

Thank you so much. That is what we did. We selected it on our Statement of Intentions, but Im not going to file the reaffirmation paperwork. I dont think it will be a problem

Tomorrow is the deadline to have everything in. We filed on May 20. I finally finished all the paper work and got all the stuff together for the trustee. It feels good to be getting this done.