Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Why reaffirming a mortgage is a very, very bad idea.

Collapse
This is a sticky topic.
X
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Originally posted by TRfromillino View Post
    Ok, I have to have an answer on this tonite! I keep reading about don't reaffirm, just keep paying and staying, if i want to. Well if you don't check reaffirm, than what do you check??? I tried to push past checking the 'other' box for retaining, stay and pay, but my lawyer informed me today that this option was not for real property and was not applicable in Illinois. So once again, I'm back to only being able to check reaffirm or surrender. I read that if I surrender, that automatically lifts the stay and they can take the house after discharge. I don't want that! But I'm so confused sometimes and I feel sometimes like I know more than my lawyer. But I have to go sign the papers tomorrow and they want to know what I'm going to do. And I don't know.
    Ask your attorney about checking "reaffirm", but then not following through by executing a reaffirmation agreement.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

    Comment


    • Honestly, I believe I will just do that. And actually I'm just about done asking him anything. There's no strategy with the guy, it's all cut and dried. This or that. His secretary is worth more than he is. Thanks so much for answering!

      Comment


      • Thanks Des for the feedback.

        I agree with everything you said. Bottom-line I will not be reaffirming either my 1st or 2nd. Will "try" to redeem the 2nd, but I too cannot find anything that supports real property redemption in my TX district. Both my BK attorney and a prepaid legal service said this can "sometimes" be done in my district but could not / did not tell me specifically Why it could be done.

        "IF" I do get the redemption, I'll post back and let everyone know.

        Thanks all!

        Comment


        • We are in Colorado and have a second mortgage - home equity line with Fifth Third Bank. That we DID NOT reaffirm after the Chapter 7 Discharge. We just keep struggling to pay the payment. Our mortgage is in the Bankruptcy Department who is very difficult to deal with. They do not send monthly statements or end-of-year Interest 1098.

          They report on our Credit "Debit included in or discharged through Bankuptcy Chapter 7: Balance Amount -0-: Closed Account Closed at Credit Grantor's Request" on Experian and Equifax.

          Does this mean that have written-off the debt and would not be able to foreclose if we stopped paying? I would love an attorney answer or the contact for a Colorado BK attorney to talk to. Thanks for any help.
          Lauren

          Comment


          • Originally posted by ColoFiler View Post
            We are in Colorado and have a second mortgage - home equity line with Fifth Third Bank. That we DID NOT reaffirm after the Chapter 7 Discharge. We just keep struggling to pay the payment. Our mortgage is in the Bankruptcy Department who is very difficult to deal with. They do not send monthly statements or end-of-year Interest 1098.
            I am pretty sure they are required by the IRS to send you Form 1098 if you are making interest payments. Have you specifically asked them to send you a 1098? Most lenders will send informational statements after you are discharged. Have you asked them to do that?

            Originally posted by ColoFiler View Post
            They report on our Credit "Debit included in or discharged through Bankuptcy Chapter 7: Balance Amount -0-: Closed Account Closed at Credit Grantor's Request" on Experian and Equifax.

            Does this mean that have written-off the debt and would not be able to foreclose if we stopped paying?
            No. They still have a lien on the home and can foreclose if you stop paying. But, they cannot sue you for a deficiency because the discharge relieved you of personal liability. If you can't afford to keep the home, stop making payments and live in the house for free until they sell the home at a foreclosure sale.

            Originally posted by ColoFiler View Post
            I would love an attorney answer or the contact for a Colorado BK attorney to talk to. Thanks for any help.
            Lauren
            I'm not an attorney, but the effects of a discharge of a mortgage are pretty straight forward. You can Google "discharge of mortgage in Chapter 7" for confirmation. BKforum members are not allowed to recommend an attorney in a public forum, only by PM. I don't think you have enough posts to receive PMs.
            LadyInTheRed is in the black!
            Filed Chap 13 April 2010. Discharged May 2015.
            $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

            Comment


            • Thanks, LadyintheRed,

              I am not concerned about the 1098 except in conjunction with the fact that they are showing it as ZERO balance and CLOSED on two credit bureaus, plus not sending me any statements. Seems to indicate they have written it off their books.

              The house was upside down at the time of the discharge and they verbally indicated they had no interest in having it since they would get "taken out" by the first mortgage.

              Seems to me if they wrote the balance off of their books, that is a legal action resulting in them have nothing to collect upon???

              Comment


              • I was asked to sign a reaffirmation form also, but I said no, because at my age if I went in the hospital for some reason and couldn't continue payments, I figured they would take everything. Where would I go if I ever got out of the hospital!? When I talked to people at the bank about it, I was told they wouldn't send confirmation to the credit agencies that I was making payments, and they wouldn't send me statements. Well, my credit is already ruined, and the statement has the same things on it that the receipt I receive has when I make my payments. Except for a couple of auto-pays I'm a cash only person now. That reaffirmation locks you in and if something drastic happens, what then?

                Comment


                • Originally posted by ColoFiler View Post
                  Thanks, LadyintheRed,

                  I am not concerned about the 1098 except in conjunction with the fact that they are showing it as ZERO balance and CLOSED on two credit bureaus, plus not sending me any statements. Seems to indicate they have written it off their books.

                  The house was upside down at the time of the discharge and they verbally indicated they had no interest in having it since they would get "taken out" by the first mortgage.

                  Seems to me if they wrote the balance off of their books, that is a legal action resulting in them have nothing to collect upon???
                  ColoFiler this is the first time I saw your follow up question. Sorry for missing it before.

                  They show it as zero balance and closed on your credit report because the debt is discharged, so you have no legal obligation to pay it. Your credit report is a record of debt you are required to pay. Reporting a discharged debt would be inaccurate because you are not required to pay it. The debt no longer exists. What exists is a lien on your property and you must make payments according to the original contract to prevent the bank from foreclosing on that lien. Reporting a zero balance and closed on your credit report has nothing to do with the status of their lien and their ability to foreclose if you default and they decide it is worth while to do so.

                  They don't send you statements because they don't want to risk being accused of trying to collect a discharged debt. If you call them and ask them to send informational statements, they might do that. But, they might not. They do not have to send you statements to maintain their right to foreclose.
                  Last edited by LadyInTheRed; 08-21-2016, 05:37 PM.
                  LadyInTheRed is in the black!
                  Filed Chap 13 April 2010. Discharged May 2015.
                  $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

                  Comment


                  • Originally posted by stella123 View Post
                    I was asked to sign a reaffirmation form also, but I said no, because at my age if I went in the hospital for some reason and couldn't continue payments, I figured they would take everything. Where would I go if I ever got out of the hospital!? When I talked to people at the bank about it, I was told they wouldn't send confirmation to the credit agencies that I was making payments, and they wouldn't send me statements. Well, my credit is already ruined, and the statement has the same things on it that the receipt I receive has when I make my payments. Except for a couple of auto-pays I'm a cash only person now. That reaffirmation locks you in and if something drastic happens, what then?
                    Exactly!
                    LadyInTheRed is in the black!
                    Filed Chap 13 April 2010. Discharged May 2015.
                    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

                    Comment


                    • Ok so I have done my due diligence on this topic and my attorney did not provide any advice in either regard and left it up to me. The reason I decided to re-affirm was because I have nearly 22% equity in the home ($115k home with a $90k balance). In the event I cannot pay the mortgage, I can always sell this home below FMV and still recoup most of the equity without a problem. This home is in an area that isn't very bubbly and grows slowly; even in 2008 the home price did not drop more than 5%. My personal preference in this case is that my equity will secure my home enough that even if I had to foreclose I would not have a deficiency. A home in this neighborhood foreclosed a few years ago and sold very quickly at foreclosure for $98k. I am taking my risk here that even in the worst case scenario I would not be deficient. The home is over-insured so I am not concerned with any catastrophic loss scenarios.

                      Now personally I am planning on moving out in the next year and turning this into a rental home. Obviously this is a topic not for this forum and I have researched it extensively. For me reaffirmation was a mental re-start; the Ch 7 was due to a business endeavor (if you can call it that) that did not work out and the mortgage was never underwater and I have always been able to pay it. Like I said, if in the event I cannot rent the place (very unlikely in our market) and have to foreclose, my equity gives me a safety net that I would not fear a deficiency. And yes I am doing this primarily for the credit history (Might be misunderstanding but if I reaffirm I believe I keep my good history for the mortgage from before I filed as well vs having a Included-In-Bankruptcy). For me it is more of a mental state of mind, knowing I can start over and keep the mortgage which I feel was a good deal (3.25% rate locked for 30 years in a home that has a hot rental market of which I have 22% equity). I understand I can keep the home without reaffirmation, but as another poster said here, I will always feel like I am in limbo with unfinished business from the bankruptcy.

                      I still have a few more weeks left to "rescind" my reaffirmation agreement, but at this time I haven't seen a convincing reason for me to do that? If anyone can advise please let me know why you think this wouldn't be a good idea...

                      Comment


                      • I am filing individually, but husband is a co-signer. We owe way more than the house is worth with a high interest rate. I do not want to reaffirm. Should I reaffirm or should my husband try to negotiate for a better interest rate since his credit score is in the 700's?

                        Comment


                        • Originally posted by Vonny12 View Post
                          I am filing individually, but husband is a co-signer. We owe way more than the house is worth with a high interest rate. I do not want to reaffirm. Should I reaffirm or should my husband try to negotiate for a better interest rate since his credit score is in the 700's?
                          "We owe way more than the house is worth with a high interest rate"

                          That's reason enough to NOT re-affirm. The credit benefit does not outweigh the potential risk if you are underwater again in the future and end up not being able to foreclose. Just keep paying the bills and you'll be fine living in the home but this is one situation I feel is not worth re-affirming

                          Comment


                          • Thanks knowledge101.

                            Comment

                            Unconfigured Ad Widget

                            Collapse
                            Working...
                            X