Question about reaffirmation agreements on vehicles

[b_girl]

Has anyone reaffirmed a 1st mortgage and not a 2nd HELOC (different lenders) or the same question with cars - reaffirm one and not the other (we have loans on both cars with credit union - same as our 1st mtg). Suggestions?

I would prefer to NOT reaffirm any of them ----- but just keep paying the payments. Bt can they take the cars/houses anyway - even if you stay current?

Worry with reaffirmation is I have a balloon payment in 2 years on the 1st mtg - so a bit afraid to reaffirm, just in case I can't refinance.

I'm kinda in the same boat as you. We have 2 cars and 2 houses (one is a rental). We were going to re-affirm all of them, but sanity kicked in just in time and we realized that we would be committing financial suicide if we did, so the rent house is going bye-bye, along with 1 of the cars. So now we're struggling with the 're-affirm or not re-affirm' question on the remaining house and car. My attorney did advise us to re-affirm our house payment at the least. His reasoning is that A) it will help us re-establish our credit faster, as the mortgage company will report our payments monthly (vs. making payments with no record being noted on our credit reports) and B) if we ever get behind/pay late for any reason, the mortgage company could proceed with foreclosure and take our home away from us. We're still trying to decide if we should take the risk, as this loan is an ARM and adjusts every 3 years (it only went up $50 last year, and the payment is super low, so it was no big deal..not like the monster ARMs I've heard about on the news). However, if I had a balloon mortgage, I would really have to think twice about reaffirming...just too much uncertainty there for me...if I couldn't refinance, what would happen? I probably wouldn't reaffirm if I were you and would just keep making those payments religiously. But what happens in 2 years--will they want/try to balloon your mortgage anyway?

As for how we decided the issue of reaffirming the vehicles, it finally came down to whether dropping the $300 payment would affect our means test...without that payment, would the trustee try to force us into Ch. 13, thinking we would now have some money left over each month to make a payment? (what a joke! When you own an older home that you're still in the process of remodeling, do you ever have money left over? ) Luckily, our attorney double checked the means test and told us that since we were 500 in the negative, we could drop both payments and still proceed with our Ch. 7. Whether this will be the case in your situation is up to your bills to income ratio as spelled out on the means test and is a really good question for your attorney.