341 Done, but have a Reaffirmation quesiton

[molly2073]

Hi had our 341 hearing yesterday for a chapter 7. Everything went fine. Just like everyone said on here. Although from experience you are still extremely nervous. But WooHoo we are now in the 60 day club. I have a question? Does anyone know when you are reaffirming your mortgage, is it my responsibility to contact my mortgage company ? Will they already know we have filed bk from the letters that our sent out to our creditors when we filed? Also would you reaffirm a second mortgage ? Just about everything on here says no dont reaffirm 2nd mortgage. But my lawyer told me I needed too. Any advice would be helpful. Also the mortages are with 2 different banks. 1st is with a local bank the 2nd is with Wells Fargo. Thanks again

[wantout]

My first mortgage would not reaffirm, the 2nd mortgage said I needed to reaffirm or I wold need to surrender the house...


My first is a ride through, as long as I make the payments, I get to stay, no harm no foul..

My 2nd is re affirmed. at least it is reporting on my credit report...

They were both notifed of my filing by the court. I did call them both and spoke with them to give them a heads up and to let them know I intended to keep my house.

As for the reaffirmation paperwork, it was sent to my attorney, who forwarded it to me, I then signed where I was told to by the littel stickers that said sign here and mailed it to the mortgage company.

[NoMoreCards]

It is never in your best interest to sign reaffirmation paperwork on your house mortgage(s) UNLESS you have lots of equity.

As long as you continue to pay, you still own your home just as you always have. Nothing changes and you continue to live there.

However if something bad happens (say you lose your job), you have the ability to walk away without them coming after you for the balance of the mortgage(s).

The second mortgage is in the second position to get paid IF the house were foreclosed on. So lets say your 1st = 150K, and your second is 50K. And you have to walk away. The house is sold by the bank for 155K, you would still be liable and legally responsible to pay the remaining 45K to the second mortgage company IF you reaffirm.

Reaffirmation does nothing to help you, and has the potential to be very bad. I see why the second pushes for reaffirmation, but I would highly advise against it.

If your lawyer is pushing you to reaffirm, I would sit down and discuss this in detail to see their reasoning as to WHY???

In any case, I wish you the best in whatever you decide.

[Pandora]

My first mortgage would not reaffirm, the 2nd mortgage said I needed to reaffirm or I wold need to surrender the house...


My first is a ride through, as long as I make the payments, I get to stay, no harm no foul..

My 2nd is re affirmed. at least it is reporting on my credit report...

They were both notifed of my filing by the court. I did call them both and spoke with them to give them a heads up and to let them know I intended to keep my house.

As for the reaffirmation paperwork, it was sent to my attorney, who forwarded it to me, I then signed where I was told to by the littel stickers that said sign here and mailed it to the mortgage company.

Did you check into why the 2nd told you that? Now you're legally on the hook for the 2nd.

I'd be asking alot of questions to my attorney as to why a reaffirm on a 2nd lien holder....

[NoMoreCards]

I am not 100% sure of this, but I THINK you can rescind your signed reaffirmation within 60 days. The reaffirmation must also be filed with the courts to be legal. It might be in your best long term interest to look into this.

[wonderingrov]

I'm a little suprised the lawyer advised reaffirming the 2nd. One of the forms my lawyer had me review was a form from their office saying they prefer NOT to sign off on reaffirmation agreements - and that they require a consult before they will sign off on it. If it shows any chance of hardship, they won't sign off on it according to their form. From what I've read on this board, it seems like a lot of lawyers take this type of position in relation to reaffirmation agreements.

[wantout]

Did you check into why the 2nd told you that? Now you're legally on the hook for the 2nd.

I'd be asking alot of questions to my attorney as to why a reaffirm on a 2nd lien holder....

The 2nd stated they do not allow ride throughs.. Dont reaffirm, they come after the house, so I went ahead and reaffirmed...the balance is not large, just over $10,000. The house appraises for just over $80,000, total that I owe on it is about $51,000. I could sell, make some money, pay the 2nd and move on with life when I want to..

My attorney said to do what I wanted, he did say he never recommends reaffirming, but since I am not under water on the 2 items I wanted to keep, I thought it was best to do what I did, my attorney agreed, so we moved forward. Right or wrong I did what I did, and am OK with it.

I also reaffirmed my vehicle, I owe $12,000 with a blue book of $17,000.

[Pandora]

The 2nd stated they do not allow ride throughs.. Dont reaffirm, they come after the house, so I went ahead and reaffirmed...the balance is not large, just over $10,000. The house appraises for just over $80,000, total that I owe on it is about $51,000. I could sell, make some money, pay the 2nd and move on with life when I want to.

I think your 2nd gave you a scare tactic and it worked In order for them to come after the house, they would have to foreclose later down the line. Your personal responsibility to that obligation would have been erased in the discharge of your BK; you could have walked at any time from the 1st and the 2nd without incident. You didnt reaffirm the 1st - so you can walk away at any time because you didnt reaffirm, however now even if you walk away, you will be obligated to pay the 2nd.

To each their own I suppose, but your attorney was correct - no reaffirmation of the 2nd, especially since you didnt reaffirm the 1st. I know why you did it - you didnt want the 2nd to foreclose after the 1st was paid off in your ride through... but - if your intention was to keep the house, then why not reaffirm the 1st given you reaff'd the 2nd?

[wantout]

I think your 2nd gave you a scare tactic and it worked In order for them to come after the house, they would have to foreclose later down the line. Your personal responsibility to that obligation would have been erased in the discharge of your BK; you could have walked at any time from the 1st and the 2nd without incident. You didnt reaffirm the 1st - so you can walk away at any time because you didnt reaffirm, however now even if you walk away, you will be obligated to pay the 2nd.

To each their own I suppose, but your attorney was correct - no reaffirmation of the 2nd, especially since you didnt reaffirm the 1st. I know why you did it - you didnt want the 2nd to foreclose after the 1st was paid off in your ride through... but - if your intention was to keep the house, then why not reaffirm the 1st given you reaff'd the 2nd?

I do indeed intend to keep the house, the 1st stated to me they do not reaffirm.

It is what it is, I can allways sell and still make a little money after the 1st and 2nd are paid.