2nd mortgage and reafirm filing?

[wantout]

What would happen if the 2nd mortgage holder did not file the agreement with the court before my discharge?

The law firm for the bank has it in hand, has had it for about 2 weeks, my discharge should be next week, but so far no updates to my case since the report of no distribution in Feb.

[StartingOver08]

IMO, do NOT reaffirm your second mtg.

You can continue to pay it (ride thru) if you prefer to do so, but a reaffirmation on a second is not in your best interest.

[justbroke]

There usually is no reason to actually reaffirm a second mortgage. Always ride through if you can. I'm not doing anything with my second.

[wantout]

There usually is no reason to actually reaffirm a second mortgage. Always ride through if you can. I'm not doing anything with my second.

The 2nd holder said they would refuse any payments if I did not reaffirm. I called my attorney today, he said if the 2nds attorneys do not file before I am discharged next, it is on them, dont sweat it.

[StartingOver08]

The 2nd holder said they would refuse any payments if I did not reaffirm. I called my attorney today, he said if the 2nds attorneys do not file before I am discharged next, it is on them, dont sweat it.

Exactly. Research more on this forum. There are others that were discharged from their Ch 7 and have settled the 2nd for 10-12% in exchange for the second mtg removing their lien.

Naturally you would only do this if you are retaining the property. If you are walking away, why pay anything?

[Stilltheone]

I would never ever ever reaffirm a second mortgage either. I agree with the above. Many lenders are settling for pennies on the dollar for HELOCS.

[Ann]

Good question...if you do not reaffirm your second how do you go about trying to settle? Wait until after the discharge?? Do you say you are not going pay them anymore and see what happens?

[kw1025]

Ann that is a great question. I have a 1st and 2nd on my home that i am doing a ride thru - they are both bank of america loans. If i do not pay the 2nd, can they foreclose since it is the same bank? I have been discharged of everything since dec with no re-affs signed. Do i keep paying the 2nd?

[pcn]

From what I've read so far, if both loans are with the same bank the possibility of foreclosure is greater than if the 2nd was with a different bank. What that increased probability actually is, I haven't seen anyone put a number to.

[daytona]

From what I've read so far, if both loans are with the same bank the possibility of foreclosure is greater than if the 2nd was with a different bank. What that increased probability actually is, I haven't seen anyone put a number to.

I might guess "slightly" higher, but if they did foreclose what do they really gain? Depends on your property value and mortgage amounts to put a liklehood to it.... I think in this case the 2nd is attempting to play hardball, as I believe it would be highly unlikely that the 2nd would "refuse" payments..they can't come after you anyway so what are they gaining by refusing them? If they foreclose on the 1st then they are likely out even more money. I wouldn't reaffirm the 1st or the second, If you pay both of them the bank WILL be happy campers..

I think some get confused with the 2005 BK re-write which says (in part) if you don't reaffirm then you have to surrender. It seems most judges are not following this...even the HAMP documents REQUIRE that the banks NOT make debtors reaffirm in CH7. Only your attorney will know your particular court and any potential state laws that could come into play....

[wantout]

I am not reaffirming the 1st, I dont want to reaffirm the 2nd but my attorney said go ahead sign it, send it off, registered mail, if they mis the deadline, it is on them.

He said we have 60 days after I am closed to change the filing on the 2nd..

[daytona]

Well I would probably take the advice of your attorney if he has an end game in mind, which it sounds like he does. NO WAY would I reaffirm 2nd though, especially since you are not on 1st unless any liability on 2nd goes away though.

[StartingOver08]

I am not reaffirming the 1st, I dont want to reaffirm the 2nd but my attorney said go ahead sign it, send it off, registered mail, if they mis the deadline, it is on them.

He said we have 60 days after I am closed to change the filing on the 2nd..

Check this info. My attorney said the reaffirmation could be rescinded/revoked within 60 days of signing BUT it had to be before the discharge. Verify with your attorney. I don't know why he is asking you to sign the reaffirmation if you don't want to reaffirm it. Sounds a little like playing with fire to me. Makes no sense to file a reaffirmation at all and it is not in your best interest. What goal is your attorney trying to achieve by having you sign a reaffirmation?

[justbroke]

It's actually in 11 USC 524 and it is the later of the discharge date or after 60 days have expired. Or maybe your District has read the statute differently? Wouldn't surprise me.

From 11 USC 524(k)...

Your right to rescind (cancel) your reaffirmation agreement. You may rescind (cancel) your reaffirmation agreement at any time before the bankruptcy court enters a discharge order, or before the expiration of the 60-day period that begins on the date your reaffirmation agreement is filed with the court, whichever occurs later. To rescind (cancel) your reaffirmation agreement, you must notify the creditor that your reaffirmation agreement is rescinded (or canceled).