Can I set the terms of a Reaffirmation?

[StartingOver08]

Did they post the past due 4 payments on the reaffirmation balance? Probably.

If the house is upside down, you may want to walk away. I am assuming that the 1st modified the mortgage before your BK, right? Did you reaffirm your first or just ride through? Is the first upside down too? How large is it, the first?

I mention this because it is unlikely that the second would buy out the first. There are other threads on here regarding this. The reason the second wants you to reaffirm is because they know if you walk away they can get the $$ from you in the future. If you did not reaffirm the first - there is no way in the world you should reaffirm the second. In fact, even if you did reaffirm the first, don't reaffirm the second. Call their bluff. Yes they can foreclose on the second, BUT they would have to buy out the first to protect their interest and that is highly unlikely. I am not an attorney. Read some of the threads here on second mortgages. They do not play nice.

[xeniilia]

You can negotiate a reaffirmation. Some lenders will cooperate -others will not.

Does your house have any equity? If it does not have equity, I would not sign a reaffirmation at all. Just do a 'ride through'.

As to the balance, make them itemize what each charge is for and challenge the charges. You can also negotiate the balance, the length of the loan, the interest rate and anything else in the terms.

No there's no equity, with the market decline there's actually negative equity.

My concern witht doing a 'ride through' is that right now we are 4 months behind. Before we filed in February, we contacted them asking them to do something about the loan. Either forgive the 'fees' that never allowed the balance to go down, or drop the interest rate. My husband tried the threat of "we're going to claim bankruptcy and if you don't do something, you can have the house" they came back and said they had to think about it, and in the mean time don't make any more payments until we get the reaffirmation done.

So now, I'm afraid if we don't do a reaffirmation, they will want the past due right now, or forclose. And we just don't have it.

Or main mortgage last fall worked with us, dropping our interest rate from 12% to 3% for the first 2 yrs then 5% for the duration of the loan.

(btw I misquoted myself in the original post, the original loan terms were $17000 at 15%, new terms they want are $19800 at 15%, starting 4/1/09)

[StartingOver08]

You can negotiate a reaffirmation. Some lenders will cooperate -others will not.

Does your house have any equity? If it does not have equity, I would not sign a reaffirmation at all. Just do a 'ride through'.

As to the balance, make them itemize what each charge is for and challenge the charges. You can also negotiate the balance, the length of the loan, the interest rate and anything else in the terms.

[xeniilia]

My 2nd mortgage sent me the paperwork for a reaffirmation. The original loan terms were 17,000 at 16%, in the reaffirmaton papers the new terms are $19,800 at 15%. I've been paying on this loan for over 3 years, sometime in the last 6 months we fell 2 months behind, but kept it floating, just unable to catch up. Our loan balance NEVER dropped over the years. So we've paid them thousands of dollars, but now they want us to agree on a high loan.

My husband wants to fill out new reaffirmation papers for the original loan amount and a lower interest rate, like 8%.

Can we do that?