Retained versus reaffirmed property

[choover]

Hello, I had a chapter 7 BK in 2004 and have been working to rebuild my credit since then. My home loan shows as a 0 balance, IIB. When I called them to have the balance updated, since I have never missed a payment, I was told they could not update it. When I asked why the csr told me that when I filled my BK I never reaffirmed my property, I simply retained it by making payments continously. So she told me that because I did not reaffirm that they cant change the ways its recording because if I decide to walk out and they repo the property they cannot come after me for the money.

A side note here.. I have a manufactured house with negative equity, so this is sounding good to me lol, but is this true? And if it is true, how long after I stop making payments until they repo the property in this situation. I looked through my BK packet and found a sheet that said I intended to reaffirm, but there was no reaffirmation agreement in there, I called my old lawyers office and the secratary said she did not see that one was mailed and did not see that one was signed at the meeting of creditors. So I dont have one, my lawyer doesnt have one, the mortgage company dosent have one, hence there isnt one. But is what she told me true about walking out?

She also said when I gasped " I can walk out on 20k negative equity and you cant do anything about it! " that they would report it as a repo on my credit report. If I am not mistaken nothing other that IIB can be added after the BK, can they add it, or no?

If this information sounds correct, I will be consulting a attorney before I ever do just walk out, but before I talk to him for $250 a hour, I want to make sure this is even feasable if the property truly was not reaffirmed.

Thanks Chris, Michigan

[HHM]

Basically, everything the bank told you is true.

Since you did not reaffirm, they are under no obligation to report the account as anything other than IIB.

However, if you walk out on the property later, THEY CAN report it as repo/foreclosed since the foreclosure did happen concurrently with your BK.

But also, they CANNOT come after you personally for any deficiency balance (i.e the negative equity).

If you stop paying, I imagine they will repo/foreclosure will happen at whatever timeframe the bank normally repos or forecloses.

[choover]

Do you know if the repo would look to be new on the report? They cannot reage the account included in the BK, can they? I have gotten all my scores up a little over 700 I want to make sure I can keep em there

Worst case scenerio I would think... I wonder if I could have a lawyer draw up a letter letting them know we are going to give them their property back, at which Point I would assume the lot rent would be their responsibility if the house was theirs. ahhh so many questions