Re affirm or not?

[drummer1]

My lawyer recived a "Reaffirmation" package from our second mortgadge company, she told us about but said at this time we should not sign it and just continue to pay it monthly, she said if worse comes to worse they may force us to accept it...is this true? and why would they make us sign it, its not like you can discharge a mortgadge anyway? we certainly want to keep our house?

Secondly...As to my vehicle, the bank that holds my loan is very loose on how they handle this, they told me that they could care less if we re affirm or not and that as long as I sent in my monthy payments they wouldnt do anything at all..My question is, I could legally if I wanted to, drop off my truck and not owe a dime right? because it is discharged in the BK and with no re affirmation agrement there is nothing they can do?


My main concern is the mortgadge, should I just sign it or take my chances? Thanks

[BKTango]

There are advantages/disadvantages to both. As you know if you do not sign a reaffirmation agreement if at any time you need to, you can turn over the property and walk away and owe nothing free and clear.

However, in some cases, if you are late on your payments they have the right to repossess or forclose. Most will still work with you and allow you to catch up rather than the taking the property. Also, without the agreement the payments you continue to make will not be reported to your credit report. But even those who have signed the RA's are having trouble getting their payments reported.

If you do sign, you are taking on that debt again. If something should ever happen, you cannot just walk away. You will owe the money, and all of it.

In our case, our agreement wasn't filed with the court in time thanks to the mortgage company, we haven't had any problems so far and are just continuing our payments on time. If you decide to go this route, make sure you keep copies of your payments, get receipts, or send them via return recept requested. You'll have to make the best decision for your family, and follow your lawyers advice. I would hold off for now on signing the agreement with the 2nd mortgage company, especially if the 1st mortgage co hasn't asked for one yet. If anything, you can sign later as long as it's filed with the court before your discharge. I personally wouldn't be signing one for the 2nd mortgage unless I was forced to and if the 1st mortgage company forced me to.