How to reaffirm mortgage??

[mylife05]

Has anyone experiened this, or have any suggestions?

My Ch7 was discharged in April. I did not charge-off my mortgage, and included my intent to reaffirm in my petition. I never recieved a reaffirmation agreement from them. My attorney said, "don't worry, as long as you're making payments, there's nothing to worry about". I've NEVER missed a payment, nor even been late. (The big Citi... I didn't choose them, they bought my previous mortgage company... never choose them!) I thought surely my mortgage would be back to normal by now, but its not. Every month my statement still has a message on it about my bankruptcy, I don't have internet access to my account, and when I call, my calls go directly to the collection department. My credit reports say "included in bankruptcy", and show a 0.00 balance for my mortgage.

When I call them, THEY say *I* was supposed to send a reaffirmation agreement. My attorney says, THEY were supposed to send me one, WE can't draw one up out of NOTHING, on our own.

WHat's up? How do I get this resolved?

[mylife05]

More info...

Thanks for the overwhelming responses. Just kidding.

OK, I finally received a real response from my mortgage co. They sent a letter saying that they aren't changing anything about the status of my account "in bankruptcy", or the way they are reporting to the credit bureaus, because they never received a Reaffirmation Agreement. THey included one, and asked me to sign it, file it, and send it back. They also agreed that I had never been late on a payment, and if I needed them to confirm this for a potential new creditor, they would be happy to.

Is this going to work??? Am I going to be able to file this (my discharge was in April, 2005)??? I'm waiting for my attorney to call me back. It seems like I've read something on this forum about re-opening a case... I'm irritated with my attorney because I ASKED him about this and he said dont worry. Sure, they can't foreclose on me if I'm making payments, but I want my account in good standing, and my credit straightened out!

Any thoughts?

[Teri]

?? for those that know the answer to this posters question. If mylife05 doesn't reaffirm (formally sign the agreement), and it was stated in the bankruptcy that the intent was to reaffirm--can the mylife05 just walk away from the house without any repercussions (ie after they foreclose and sell the house - come after the debtor for the difference of the loan amount and the sale)

[Minnymouth]

Hello,
Okay, regarding the reaffirming of the the mortgage on your home with Citi.

You said on your credit report it was listed as "included in bankruptcy"....

Okay, just because you sign a reaffirm agreement with Citi DOES NOT MEAN they will remove the"included in bankruptcy" statement off your credit report.

Word of caution ---

You DO NOT have to sign the reaffirm agreement to keep your home.... As long as your payments stay current they cannot foreclose on you....

BUT IF YOU DO SIGN IT - the minute you make a late payment they can start foreclosure if they want too and you will THEN be responsible for the entire debt of the home.... (if sold - difference of sale and what's owed)...

Since it is marked "included in bankruptcy" - if you stop making payments on it and they foreclose THEN YOU ARE NOT RESPONSIBLE for the difference.....(because it says "included in bankruptcy")

YES, THEY WANT YOU TO SIGN IT.....................(it guarantees them they will get their money no matter what - you sure can't claim BK again) but as your lawyer said "don't worry about it".....their getting their money, so they won't foreclose.

And signing it will not make them change your credit report - they really don't have to change it just because you reaffirm....they don't even have to report anything if they don't want too.

Signing or not signing is not going to fix your credit report.... only time will fix that....

If you need something to show that you have been making all payments on time to get credit all you need is a printout of your account with them...(just call and ask them for one)...

Personally, I would not sign the reaffirmation, I would just keep making my payments as usual and leave it just like it is....

You never know what the future may bring.....

Minny

[Minnymouth]

Also if they say they will foreclosure if you DO NOT SIGN the agreement - THAT IS BLACKMAIL........ you do not have to sign it to stay in your home.

Just make sure your payment stays current.....
As long as you are current they cannot start foreclosure proceedings. (I'm sure that's what your lawyer meant about - don't worry).

Minny

[mylife05]

Minny,
I talked to my attorney about all this and faxed him the letter I received. He basically said what you just said. Maybe it is sinking in now. I didn't like it when HE said it on the phone a few minutes ago. But YOU are saying the same thing.

*sigh*

[Minnymouth]

You lawyer is protecting your interest by not having you sign anything....no reason to sign it, your making your payments.....
Also, means that is something did happen in the future and you had to give the home up, then you would not be responsible for the balance owed on it.... (kind of a blessing in disquise).
This way you keep your home, can sell it if you need too, or give it up later and owe nothing else on it.......... (same principal as reaffirm a car or letting them repo it)...
Glad you checked with you lawyer also...

Minny

[babycakes]

Okay, I did not reaffirm my mortgage or car, like everyone says. I realize I won't get any more bills. How do I know what my balance is in 28 years or so? And after it's paid off, how do I get the deed? Will they just send it when I finally pay it off? The same question for my car too, will they just send the title when it's paid in full?

[Minnymouth]

You can request a printout of your account at any time.... you are still a "current customer" paying on an account. Also when it is paid in full - they must supply you with a deed and title..... you have legally paid for it all....

Just keep very good records of payments (cancelled checks and always be current on them) , NO LATE PAYMENTS...

Minny

[Minnymouth]

bELIEVE ME, they don't want to take your house or car for resale, they want you to make payments on it........they will be glad to give a title for the car or take the lien off the home when they are paid for....

On your home you will get the annual report for income tax purposes.....

Minny

[Minnymouth]

You should have the deed to your home with a "lien" against it (your mortgage).... You should have your auto title (showing a lien by the bank) on it.....
After they are paid for then you can request to have the liens released.....

Minny

[Minnymouth]

Since signing the reaffirm will REALLY so "no results" on your credit report - I would not sign them, but you decide what is best for you....

Minny

"My opinion or suggestions is from my experience only"

[Minnymouth]

Babycakes,
If in the future you decide to turn the car back in for some reason you can quit paying on it, make them pick it up, and you owe "no more" on it. As long as you pay for it (keep payments current ), they cannot "repo" it on you.

Minny

[smallchange]

If i sign a reaffimation on my mortgage and the lender also signs the reaffimation agreement then the MUST report my ontime payments accurately to the cb's,is this correct? If so would it not be in my best interest to reaffirm? I have roghly 6000 in equity which will be exempted and have never been late. I also have good job security and without the ubsecured bills will have no trouble making the payments. I also want to reaffirm my car for the same reasons.Mortgage co. will agree to reaffirm and credit union might for the car as well. Seems like in my case i shoul reap the benefits of positive credit reporting on these debts as i fully intend to keep them.Maybe i am missing something,but i believe they must report positively if both agree to reaffirm?

[mylife05]

If i sign a reaffimation on my mortgage and the lender also signs the reaffimation agreement then the MUST report my ontime payments accurately to the cb's,is this correct? If so would it not be in my best interest to reaffirm? I have roghly 6000 in equity which will be exempted and have never been late. I also have good job security and without the ubsecured bills will have no trouble making the payments. I also want to reaffirm my car for the same reasons.Mortgage co. will agree to reaffirm and credit union might for the car as well. Seems like in my case i shoul reap the benefits of positive credit reporting on these debts as i fully intend to keep them.Maybe i am missing something,but i believe they must report positively if both agree to reaffirm?

This is my point, and where I am still fuzzy and VERY frustrated. Minny says, unless I am still misunderstanding, that the reaffirmation won't necessarily correct the credit-reporting. However, I reaffirmed my vehicle, and it looks COMPLETELY normal on my credit reports - like there was NEVER a bankruptcy on that loan. "Paid as agreed", and good payment history, and all that. So I feel like if I reaffirm my mortgage, it will be reported better also. (good payments, good balance, etc) My case is now CLOSED, and my attorney is not sure he will be able to file the reaffirmation at this point, and his words were "we can try if you want to, but I don't think it will do any good". So I'm still frustrated and not sure what to do.