Selling home...did not reaffirm...do I own my house? Is the profit mine?

[MereSanity]

I have a question. We filed in 2004 (closed 06/2004). I called our mortgage company numerous times to send paperwork to us so that we could "reaffirm" our mortgage (is that what it is called?). Anyway...it took FOREVER for them to get us the paperwork...almost till the deadline. I read the paperwork and did not like what it said (I think they were trying to put stuff in there that could harm us in the end), I tried to call them to discuss the whole deal and could not get ahold of a real person that knew what was going on...long story short...we never signed the paperwork.
NOW....We want to sell now and I was wondering (we have never had a late payment)...do we own our house? If we make a profit on the sale do we get the profit? Or do they? I'm in IN.
THANKS!

[RickInMich]

If you've never had a late payment, and you're not currently in arrears, then I don't see how you wouldn't retain the profit. The only thing you owe the mortgage company is the payoff amount.

From what I understand, many mortgage companies do not do reaffirmation agreements. If you stayed current, you're fine.

[lrprn]

.We want to sell now and I was wondering (we have never had a late payment)...do we own our house?

Since you never signed the reaffirmation agreement and it was never filed with the court, you do indeed own your home. Your mortgage lender has no right to any profits that you get from the sale. Also if you don't sell the home for enough to cover the loan amount, you aren't responsible for paying the shortfall either.

If your lender tries to say otherwise, contact your lawyer immediately. Good luck with the sale!

[325Falcon]

Interesting!!
So I am clear, lets say I dont reafirm my mortgage during my 7 I stay current on it for a few years. Then I decide to sell the place if I sell it for more than I owe the profit is mine? If however I sell it for less I owe nothing because the mortgage was not reaffirmed?

[HHM]

If you don't reaffirm AND stay current on payments

if I sell it for more than I owe the profit is mine?

YES

If however I sell it for less I owe nothing because the mortgage was not reaffirmed?

This scenario needs a bit more explanation. (1) You can not just decide to sell the home for less than you owe...i.e. a short sale, without getting the banks permission. The lien on the home is still valid, so even if you did NOT reaffirm, the bank is not obligated to release the lien in a volunatary sale by you unless they,the bank, receive full compensation. However, if, in the future, the home goes to foreclosure, and you did not reaffirm, you are NOT liable for any deficiency balance.