A bit of GOOD news!!!!

[okiebk09]

Just wanted to share to all those with mortgages through Chase Home Finance---we got letter via attorney today that they will either reaffirm or ride through. Whichever we choose. I have to tell you through all this bk process things like this are good news. We are keeping our house and so this is such a blessing. Thanks to all who have shared their stories. Will continue to post as things happen. 341 meeting is February 24th.

[AngelinaCat]

That is GREAT news!!! Congratulations!!

[freshstartfl]

Congrats to you!!

[liz417]

Yeah!

[brokeinfl]

Sorry for the newbie question, but what does reaffirm or ride through mean? It appears as though it is good news for you, so congrats!!

[IBroke]

Sorry for the newbie question, but what does reaffirm or ride through mean? It appears as though it is good news for you, so congrats!!

REAFFIRM: You sign a new contract, so you are legally required to fullfill the terms of the reaffirmation.

RIDE THROUGH: The creditor agrees that the "contract" goes on as before as long as you make the payments. I wrote "contract" because after your discharge, the prior debt with your lender would be erased. However, since the loan was secured by the house, the lender could foreclose if you don't make the payments.

On a Ride Through, you would only lose the house.

On a Reaffirmation, you would lose the house AND owe any amount of the loan that wasn't satisfied by the property.

[rockyroad]

Would it be considered a wiser move to just ride through?

[JRScott]

Would it be considered a wiser move to just ride through?

In the majority of cases yes it is better to do a ride through, that way if economic downfall doesn't reverse and later you have to leave the home you can do so without owing any money, whereas in a reaffirmation if you later failed to pay them they could foreclose and you'd still owe the deficient balance.