Hi all!
I know that the question of reaffirming a mortgage loan has been debated here several times, but I was wondering if I could get a little information from you.
Hubby and I agreed to reaffirm our mortgage with Chase. We filed pro se so we had to attend a reaffirmation hearing (today). The agreement that was prepared by Chase indicated that our payment would increase by $90.00 monthly after the reaffirmation so the judge would not approve it. The problem is that the increase would not occur until 2014. (As per the terms of the loan modification that we received in 2009, there is an increase every 5 years.) Without going into all of the terms and incentives given as part of the modification, we were given an excellent interest rate (2%) and a deduction in principle of $1000 every 5 years as long as the payments remain current. The judge adjourned our case for 30 days because she would like to get the terms of the agreement clarified by Chase before she makes a final decision.
I called Chase just to confirm (for myself) whether or not the terms of the modification agreement would change as a result of the reaffirmation and was told that the terms would remain the same; Chase assumed that they had to fill out the form this way because the payment WILL change after the reaffirmation; FIVE YEARS after!!
Anyway, Chase advised that without a reaffirmation of the loan, they will not report payments to the credit bureaus, and if a payment is late (by even one day) the loan can be accelerated and we could be hit with legal fees and other charges. We have $100,000 worth of equity in the house, the payments are current, and we could not even rent a studio apartment here for the amount of our mortgage. We plan to stay here (unless, of course, we hit the lottery!!
My question is this: All of our credit cards have been discharged and our car (which is eight years old) was paid for in cash (no credit history with Hyundai). Without the credit history of payments to Chase how do we rebuild our credit in a reasonable amount of time? Our car will need to be replaced (hopefully not for a few years) but without a credit history will we ever get a decent interest rate? We REFUSE to get a wallet full of credit cards again, but will one or two credit cards, with small credit limits, that are paid on time (or even paid in full each month) repair our credit?
Thanks for your input! Sorry I got so long winded
I know that the question of reaffirming a mortgage loan has been debated here several times, but I was wondering if I could get a little information from you.
Hubby and I agreed to reaffirm our mortgage with Chase. We filed pro se so we had to attend a reaffirmation hearing (today). The agreement that was prepared by Chase indicated that our payment would increase by $90.00 monthly after the reaffirmation so the judge would not approve it. The problem is that the increase would not occur until 2014. (As per the terms of the loan modification that we received in 2009, there is an increase every 5 years.) Without going into all of the terms and incentives given as part of the modification, we were given an excellent interest rate (2%) and a deduction in principle of $1000 every 5 years as long as the payments remain current. The judge adjourned our case for 30 days because she would like to get the terms of the agreement clarified by Chase before she makes a final decision.
I called Chase just to confirm (for myself) whether or not the terms of the modification agreement would change as a result of the reaffirmation and was told that the terms would remain the same; Chase assumed that they had to fill out the form this way because the payment WILL change after the reaffirmation; FIVE YEARS after!!
Anyway, Chase advised that without a reaffirmation of the loan, they will not report payments to the credit bureaus, and if a payment is late (by even one day) the loan can be accelerated and we could be hit with legal fees and other charges. We have $100,000 worth of equity in the house, the payments are current, and we could not even rent a studio apartment here for the amount of our mortgage. We plan to stay here (unless, of course, we hit the lottery!!
My question is this: All of our credit cards have been discharged and our car (which is eight years old) was paid for in cash (no credit history with Hyundai). Without the credit history of payments to Chase how do we rebuild our credit in a reasonable amount of time? Our car will need to be replaced (hopefully not for a few years) but without a credit history will we ever get a decent interest rate? We REFUSE to get a wallet full of credit cards again, but will one or two credit cards, with small credit limits, that are paid on time (or even paid in full each month) repair our credit?
Thanks for your input! Sorry I got so long winded
Closed November 2010
Comment