Mortgage payments

[lrprn]

There are two keys to making mortgage and other asset payments yourself during bankruptcy.

First is to make certain that you are sending the payment to the correct address. Many mortgage companies shift your account to a special bankruptcy division with a different address than the one you've been using before bankrutpcy.

Second, as mentioned before, it's best to make these payments through a reliable third party like your online bill pay at your bank in case independent proof is needed that you made your payment on time. This is especially important if you do not reaffirm your asset loan. Most bk lawyers recommend to *not* reaffirm any asset loan (especially one that is upside down) because there's no way to know how secure your personal finances will be in the future.

[seanf12]

So did Citimortgage even ask you to sign a reaffirmation agreement? How come you wish to do a reaffirm?

The thing that scares me about not doing a reaffirm is whether or not the lender can come and repo the house at any time.

And I also notice that some lenders don't even bother with reaffirms...why wouldn't they bother, since it is in their best interest to do so?

If you are making payments to a loan that has been technically discharged, does this mean that you will essentially be making payments forever, or do your loan terms still apply (thus if your principal still gets applied, your balance decreases over time as you pay it down, etc.)?

[seanf12]

Anyone, anyone? I am getting nervous about this reaffirmation thing...

[keepmine]

Your loan terms won't change regardless if you do or don't reaffirm.
The reason many lenders don't push reaffirmations is, debtors play hardball. If forced to reaffirm, they just stop making payments and force them to start foreclosure. All lenders need is another house to throw on the pile.
I wish I'd bookmarked a quote from a credit union rep made in the days prior to bk reform. He called the shot. He said that reaffirmation requirements on car loans would be in direct proportion to the % capacity of the lenders impound yard.

[seanf12]

Thanks

Is it possible to come after you years later, if there is equity in the house? Could they technically come after you if you don't reaffirm, or are you 100% covered as long as you make payments ontime?

[laurannm]

Interested in this answer myself...anyone?

[keepmine]

Personally, I just don't see how they can come after you post bk unless your loan is in default and even then, only up to the amount of the unpaid mortgage balance.
I never reaffirmed my mortgage {filed in Oct, 05} and have equity in my home. It's been business as usual.

[seanf12]

I would think not too, but I guess I was hoping there was actually no way legally for a lender to come after us, unless we fall behind