Keeping my house after ch 7

[Trybaby]

Hi All,

I didn't see any posts about anyone keeping their house. I am keeping my house, or at least I hope so. My attorney sent the mortgage company a letter with my intent to reaffirm. He said the mortgage company would send me a reaffirmation letter but so far I haven't seen one. He said that if I don't have it by my creditors meeting to let him know or call the mortgage company. I'm scared to call them, afraid they will say NO. The attorney assured me that they won't want my house the way the economy is now.

Has anyone kept their house? Can you share your experience on that?

Thanks

Filed 7/17/09
341 meeting 8/25/09

[hamburgervol]

Your attorney is correct, the mortgage co. doesn't want your house. Many have kept theirs through ch7.

Why would you be scared to call them? I'm sure the mortgage co. will be glad to do a reaffirmation rather than you discharging the debt.

[mom2three09]

What are your reasons for wanting to reaffirm?

Many of us are keeping our homes, but are not reaffirming.

[Trybaby]

Your attorney is correct, the mortgage co. doesn't want your house. Many have kept theirs through ch7.

Why would you be scared to call them? I'm sure the mortgage co. will be glad to do a reaffirmation rather than you discharging the debt.

I'm just afraid they will say "NO, be out by 10/1" ugh, just the thought of losing my home. I've busted ass making sure the mortgage stayed current. It's really only been the last year or so I've been struggling, after the cc companies jacked up my interest rates for no good reason. I even tried to get rates lowered. Well, now I guess they won't get paid at all...if all goes well. I really did try as I'm sure everyone on this forum did.

Looking forward to a fresh start and some sleep when this is all over.

[Trybaby]

What are your reasons for wanting to reaffirm?

Many of us are keeping our homes, but are not reaffirming.

My lawyer said that anything you intend to keep that has a loan must have a reaffirmation because bankruptcy cancels all contracts. The reaffirmation is just a new contract, same terms (not a refi) just reaffirms that you intend to pay the debt. You may want to ask your attorney because I don't think you can keep your house without it.

[2fargone]

We kept our house. We did not have to reaffirm our first mortgage but for some reason we ended up having to reaffirm our second mortgage. The only weird thing that has happened is our first will not restarrt automatic payments because we did not reaffirm with them.

[2manybills]

I'm keeping my but not reaffirming. We are underwater by about $90K, but in So. Cal. that is not bad.

I still have on line access for my first which is GMAC Mortgage and my equity line (Wells) sent us a letter to sign so that we can have our monthly statements again.

[StartingOver08]

If you have a second, do NOT reaffirm.
2fargone, the reason the second wanted you to reaffirm is because they are in the weakest position. If you had received your discharge in a Ch 7 and did not reaffirm, they would have no power to foreclose as long as you paid the first. They know it, so they get very aggressive in asking for a reaffirmation. (In order to protect themselves, the second would have to buy out the first and that is highly unlikely in most circumstances)

[coffee]

I was scared of the same thing and my lawyer assured me that he has never seen the bank take a house that was current. They dont want your house, they want your monthly mortgage payment. if you are current on that you are golden.

[CCCrazy]

I have kept my house and did not reaffirm either of my mortgages and I am only paying my first. It's underwater by 20K with just the first, and if the news is to be believed, I guess it's only going to be more underwater by 2011 when half the country will owe more on their mortgage then their house is worth. Do NOT reaffirm either of your mortgages!!!

[LuciluS]

There is a Time Frame where you can rescind your Reaffirmation on that 2nd mortgage, but I cannot recall if it is 30, 60 or 90 days.

Someone who is knowledgeable in this area, help me out please.

[LuciluS]

I've read on this forum where some States require Reaffirmations on your mortgage, but have been unable to complete verify that Statement.

I'm thinking AR maybe one of them, as the Contract we signed with our BK Attorney specifically states his fee includes 2 reaffirmations. Our area of the State was not affected too bad. We just bought our home 12/20/07 & might be $5,00-$9,000 underwater or could be above. Dh is wanting to reaffirm as he wants the 'peace of mind' and I'm wavering that way too. Also, some here have state when not reaffirming, their payments are not being reported to the 3 credit bureaus.

I'm going to use realtor.com 'what is your home worth' & print the most recent sales in our neighborhood. I know two homes sold within the past 45 days.