Why dont some do reaffirmation agreements?

[tdooders]

I was just wondering what is the reason why some banks and that wont do a reaffirmation agreement on mortgages and vehicles?

[HHM]

Do you have a specific example.

1st: Reaffirmation agreements are not required and completely voluntary. If you are current on your payments, you do not have to reaffirm

2nd: If you are too far behind on your payments and have no way to make up the back payments plus make your regular payments, they won't offer a reaffirmation.

[tdooders]

I was just wondering because I have 2 mortgages and two trucks and I am current on both and only the second mortgage and one of the trucks sent reaffirmation agreements. I was wondering why the other mortgage and truck did not send one. Wouldnt it be in their best interest to have the agreements so that people cant surrender their vehicles say months or a year down the road.

[smallchange]

Very Confusing

This reaffirmation business seems to be a very shady area. If i continue to make my car payments on time as i always have right thru my bankruptcy,but no reaffirmation agreement is completed,then i can stop making payments and surrender the vehicle anytime i choose. However if i continue to make the payments without a timely reaffirmation agreement my credit union cannot legaly report this loan to the credit reporting agencies as being paid on time,they must report it the same as other debts which were discharged during my bk. In other words they get thier money and can (must) still report this loan as bad debt. This is my understanding from what i read on the subject. I will just keep making my payments because without them i might have disposable income and i don't want that right now.However after discharge i may surrender the vehicle for that extra cash monthly unless they wish to reaffirm, Either way that payment will be part of monthly expense thru my bk.

[tdooders]

Thats what we did with our two trucks. We kept paying the payments because we didnt want to show extra disposal income but then we were discharged a few weeks ago and we called the bank on one of the trucks to surrender it (they sent a letter a couple of months ago saying we can reaffirm or surrender) and they said they would contact us to make arrangements to pick it up. That was over 3 weeks ago and still no call from them. Its not worth half of what we owe on it. Wondering if they will pick it up. So we stopped making payments a month ago now and are still driving it. We arent calling them again. They can contact us now. Now we are thinking of surrendering the other truck in about 6 months or so after we find something with a smaller payment and better gas mileage.

[crackerbear]

We were originally going to reaffirm both of our vehicles, we even signed the reaffirmation agreements. We were doing this so we could start building good credit after the bankruptcy. Well, our lawyer forgot to send in the agreements. Both vehicles were with Ford Credit and when I called to see why they had not started sending our statements again after discharge, they said they had not gotten our reaff. agreements. At this point, they would not accept them unless we reopened our bankruptcy. And because there were no reaff. agreements in place, the vehicles would continue to show as "included in bankruptcy" on our credit report even though we were making our payments on time. So, our choice was to surrender the vehicles or get no credit for making on-time payments. We were able to get approved for a car loan from our credit union, so we surrendered the car we were $7000 upside down on. About 8 months after that, we got approved for another loan from our credit union and sold the second vehicle. So, the only benefit of reaffirming the car loans is so they will starting some good reporting again. In my opinion, if you are upside down in the loan by a lot, then don't reaffirm and try to get a loan for another car and then surrender.

[tdooders]

The first truck we owe $12,000 and its only worth around $4000 at the most and we had already paid 5 years into . So they technically got their money for the truck. The second truck we owe around $14,000 on it and its worth around $11,000. But I need that to get back and forth to work and such. I am going to keep paying on it for at least 6 more months and then try and get a cheaper vehicle that will save me gas mileage then I will call the bank to surrender it. If gas wasnt so expensive I would keep the truck thru the term of the loan but I only get 11 miles to the gallon and driving 80 miles round trip to work and back is just too much.