To reaffirm or not to reaffirm mortgage??

[horse]

I read some threads on the forum about reaffirming mortgages but I'm still confused. We are being pressured by the mortgage company to reaffirm but I'm not sure it's a good idea right now. When should a person reaffirm on their mortgage after they filed bankruptcy? Is there a certain time to do it...? Also...with the mortgages rates at an all time low do mortgage companies work with those of us who have filed bankruptcy to lower our rates and make our mortgages more manageable? Has anyone had any luck in that way with their mortgage company?

[GettingGoing]

From what I have learned, unless you have a large amount of equity in your home you should NOT reaffirm your mortgage. As far as banks working with you post bk that s really a crap shoot. Some people are successful getting loan mods post bk while others have no luck at all. My guess is that if your bank is pressuring you to reaffirm then you are upside down on your home and should not reaffirm.

[horse]

We have no equity in our home but plan to stay in it and keep paying the mortgage. So...reaffirming is just for the lender's (mortgage company) security...and there is no advantage or reason for the person who is reaffirming??

[Meatstick]

That would be correct Horse, as GG stated unless you have equity there ia no reason to re-affirm. If you do then you are legally liable per the reaffirmation agreement. You get sick and/or lose your income post BK and you are hosed.

Just beware that if you don't re-affirm the mortgage company may or may not move to lift stay and proceed to possibly foreclose. You can select Other: Retain and Pay but not all districts, trustees and/or mortgage companies honor this.

In our case we are post 341 and selected to surrender our home as we are way upside down. We are current and planned to stay that way for another year until crumbsnatchers finish school. However, just 10 days post 341 Wells Fargo has filed a Motion to Lift Stay. We were very surprised as we have always been current. Per our attorney's conversation with WF attorneys, they intend to foreclose if we don't re-affirm.

So we aren't sure what will happen right now as our attorney thinks one of two scenarios will happen. WF will foreclose because they will not only take the house back and sell but they will also get paid from the VA. Second scenario and what he thinks is they are just trying to bully us into re-affirming. That will NOT happen as it is purely a business decision and although we have lived here almost 6 years we are ready to go if they do indeed foreclose while we are current.

[horse]

I think I finally get it...thanks so much! I guess our next step would be to see if we can get our district/trustee and mortgage company to agree to the "retain and pay"...and go from there. Thanks again!

[newbie2]

snipped..

So we aren't sure what will happen right now as our attorney thinks one of two scenarios will happen. WF will foreclose because they will not only take the house back and sell but they will also get paid from the VA. Second scenario and what he thinks is they are just trying to bully us into re-affirming. That will NOT happen as it is purely a business decision and although we have lived here almost 6 years we are ready to go if they do indeed foreclose while we are current.

They're bluffing. I would bet cash money on it (and I don't have alot of cash :-) If they try to foreclose VA will get involved. In fact, you should pick up the phone and call them immediately if it happens. They are outstanding in the work they do to help people keep their homes.

[horse]

VA = Veteran's Administration?

[newbie2]

VA = Veteran's Administration?

Yes.

[GettingGoing]

That would be correct Horse, as GG stated unless you have equity there ia no reason to re-affirm. If you do then you are legally liable per the reaffirmation agreement. You get sick and/or lose your income post BK and you are hosed.

Just beware that if you don't re-affirm the mortgage company may or may not move to lift stay and proceed to possibly foreclose. You can select Other: Retain and Pay but not all districts, trustees and/or mortgage companies honor this.

In our case we are post 341 and selected to surrender our home as we are way upside down. We are current and planned to stay that way for another year until crumbsnatchers finish school. However, just 10 days post 341 Wells Fargo has filed a Motion to Lift Stay. We were very surprised as we have always been current. Per our attorney's conversation with WF attorneys, they intend to foreclose if we don't re-affirm.

So we aren't sure what will happen right now as our attorney thinks one of two scenarios will happen. WF will foreclose because they will not only take the house back and sell but they will also get paid from the VA. Second scenario and what he thinks is they are just trying to bully us into re-affirming. That will NOT happen as it is purely a business decision and although we have lived here almost 6 years we are ready to go if they do indeed foreclose while we are current.

We selected the box that we intend to reaffirm but will not sign a reaffirmation agreement. Wells Fargo does not want our house even though its an FHA backed mortgage.