Reaffirming Mortgage if you are on a Payment Arrangement Plan with Mortgage Co.

[tobee43]

I think my post above must have been unclear. Sorry about that. I didn't sign a reaffirmation agreement. I was just trying to let blue know that no one was against her keeping the house. Everyone just wanted to her warn her about the implications of the reaffirmation agreement. I thought there might have been some confusion there. Perhaps I added to it.

i didn't think you did at all...i was attempting to point out, that some people can and will keep their homes for different reasons. and, yes, i would want to warn her of the implications of the reaffirmation agreement...and we know you certainly know, but may still keep your house based on personal reasons that may be beneficial to you and yours. there is nothing wrong with keeping your home for the right reasons. i'm certain that may be what and why you are retaining your house. (in fl you mark either surrender, reaffirm, retain or "other"). i don't know about other states.

i didn't want op to feel that because they want to keep their home there is anything wrong with it. shoot...we most likely would have as well IF the loan mod had come through, however, looking back in retrospect, thank heavens we didn't, since we BOTH ended up getting laid off.

[blueeyz]

tobee,

Sorry to hear your house is $200,000 under water. Mine is about $25,000 so I'm not too concerned at this point. I used to rent an apartment before I bought my house and it was over $900 a month plus pet rent so my mortgage payment is a pretty sweet deal for me besides the fact that we have put money into laying tile in most of the house, we love having our own house, so losing it, is not an option at all for me. I spoke to the paralegal in my attorney's office and she said "we should be fine" as long as I get current on my mortgage soon. Well, "should" does not make me feel all warm and fuzzy inside so I need to made it abundantly clear tomorrow that losing my home is not an option.

[tobee43]

tobee,

Sorry to hear your house is $200,000 under water. Mine is about $25,000 so I'm not too concerned at this point. I used to rent an apartment before I bought my house and it was over $900 a month plus pet rent so my mortgage payment is a pretty sweet deal for me besides the fact that we have put money into laying tile in most of the house, we love having our own house, so losing it, is not an option at all for me. I spoke to the paralegal in my attorney's office and she said "we should be fine" as long as I get current on my mortgage soon. Well, "should" does not make me feel all warm and fuzzy inside so I need to made it abundantly clear tomorrow that losing my home is not an option.

thanks so much blueeyz i very much appreciate your kind words....it was somewhat difficult leaving it after 33 years...all the memories...bringing home thru the front door, when the kids were babies coming home from the hospital and when they walked back out that same door to leave for college. but the memories are really in our hearts and not that house. really ...after all the tears and fears, i can tell you it was the best, sound business decision we ever made. the house was way to big for us now and we had most of it shut off except 3 rooms...and the grounds it was acers of care and maintence ..........oh and the BLACK mold and the FLOODING ...the water table changed and the water was now coming directly INTO the house...oh my...and THEN the foundation CRACKED and THEN the roof was going and THEN the leech fields and the SEPTIC.......LOL!!!

it was hard but as you can see, it was time for us to move on. i REALLY know this for a fact....."HOME IS where the HEART is..." we brought it all with us...right in HERE..

and GREAT luck in your home!!

[clevelandmom]

Hi Blueeyz!

Believe me, we are in the same boat! If I knew that I would lose my house in bankruptcy, I would take up pole dancing if I had to to try and save it! (not that it would do any good. . LOL) I am keeping my house - but I do not plan to reaffirm. If God forbid my husband or I die or become disabled in the next 10 years, neither of us can afford to keep this house without the other. And being stuck with a $200,000 house payment would be far worse than filing bankruptcy.

As for your not wanting a default judgment against you, my suggestion would be to first check your local rules to see how many days you have to answer the Complaint. On the day BEFORE your answer is due, file a Request for Extension of Time to Respond. You could easily buy yourself more time that way. Then, when that runs out, go ahead and file an answer, just say you do not admit or deny the allegations, and then they will probably set a court date. You will probably be within the time frame to file your bk by then.

Best of luck to you!!

[Mensa1]

tobee,

Sorry to hear your house is $200,000 under water. Mine is about $25,000 so I'm not too concerned at this point. I used to rent an apartment before I bought my house and it was over $900 a month plus pet rent so my mortgage payment is a pretty sweet deal for me besides the fact that we have put money into laying tile in most of the house, we love having our own house, so losing it, is not an option at all for me. I spoke to the paralegal in my attorney's office and she said "we should be fine" as long as I get current on my mortgage soon. Well, "should" does not make me feel all warm and fuzzy inside so I need to made it abundantly clear tomorrow that losing my home is not an option.

A couple of things... first you were concerned in an earlier post about receiving a notice of default and getting a judgment aqainst you before you are able to file the Bk.
The AZ timeline for foreclosure is judgment cannot be entered before 90 days from that default notice, so you should have plenty of time before you file and have no issue once you file, as it stops the timeline.

It is understandable that all of this is emotional for you; frankly it should be. These are life changing events that you (and most of us) are dealing with. Regarding reaffirming the mtg; you may not be able to... the judge may not allow it, so be prepared for that as well. Part of that oversight is to keep you from committing a financial travesty against yourself while you are in such an emotional state. The paralegal gave you the only advice that anyone can give you, they should be ok with it... because she nor anyone else can't make any guarantees over this. The only guarantee is to reaffirm, which of course still doesn't mean they won't foreclose if something unforeseen would accur in the future and you are unable to stay current. This would be the worst case scenario of course, late pymt and def judgment after a Bk.

The reality is that you are having trouble getting caught up... and that the house is underwater 25K. There is no objective person with a wit of financial wisdom that would advise you or anyone else to reffirm a mtg in that situation. What everyone here has said, is do not reaffirm, but pay and stay... in other words KEEP your house. As long as you get caught up before the discharge, and I'm not talking about the day before the discharge... but reasonably before the discharge, meaning you are current on the payment, taxes and insurance is in full force, you SHOULD be fine. You have to understand that your lender would much rather have you there and paying than them filing for foreclosure and taking the hit... which would end up to them worse than 25k in the tank, all said and done.

So try to understand that folks here are advising you unemotionally, in your best interest... and if you follow that advice of getting current, staying current... you SHOULD be fine... and the Judge hopefully will not allow you to commit what is a major financial error by allowing the reaffirmation. I'm sure you know that the Judge must sanction the reaffirmation, or else there is no reaffirmation whether you want to or not. Additionally, you are in the 9th Circuit court, which is one of the (if not the most) liberal courts of all... which in theory favors the consumer. The 9th allows ride thru, where other Circuit courts do not even allow them at all. Get caught up and you SHOULD be fine.