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Reaffirming & Changing Terms?

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    #1

    Reaffirming & Changing Terms?

    Is there much chance that a secured creditor (auto loan) would be willing to alter the finance terms in order to get us to re-affirm? Such as, changing from 40 months to something longer, in order to reduce the payment?
    Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.
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    #2
    Its possible, they would rather you re-affirm, otherwise they bare the risk if you default in the future and cannot hit you up for the deficiency balance, so you have a pretty strong negotiating position.

    Instead of barganing for a longer period, you should seek a lower interest rate, reduce the balance owed to the current market value. If you extend the payment length, you are just putting money in their pocket, you want the reaffirmation to be for your benefit not theirs.

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      #3
      Thanks for the info. When I asked an attorney (I've mentioned my lack of confidence in him in other posts today) he indicated I had no shot at it.

      The more I read over these boards, the more I'm considering using form7.com or something similar. I read that I can mail in the paperwork & filing fee (I wouldn't want to miss a day of work to do it in person).

      If I do it on my own, will the vehicle finance companies talk to me? I won't reaffirm unless the terms change. I want to buy a house someday and don't want a $505 vehicle payment cutting into my debt/income ratio!


      Originally posted by HHM
      Its possible, they would rather you re-affirm, otherwise they bare the risk if you default in the future and cannot hit you up for the deficiency balance, so you have a pretty strong negotiating position.

      Instead of barganing for a longer period, you should seek a lower interest rate, reduce the balance owed to the current market value. If you extend the payment length, you are just putting money in their pocket, you want the reaffirmation to be for your benefit not theirs.
      Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

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        #4
        do you think this approach would also have the same affect on a mortgage note?

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          #5
          Originally posted by poor1
          do you think this approach would also have the same affect on a mortgage note?
          Probably not (only because of the length of most mortgages).

          I don't want to confuse anyone here, Its rare that reaffirmations in a chapter 7 get negotiated by the creditor, but it can't hurt.

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