Home Reaffimation Question

[RuthCB]

This is why I reaffirmed. I do think there are some situations where it might be the best choice.
My husband and I are older. I will be getting Social Security starting in the spring. My check will cover our mortgage payment.
Our house payment is not much, we have about $35,000 in equity* as well. My husband has a stable job. It doesn't pay a lot, but it is stable.
We filed BK because I lost my business due to the recession.
We don't have as much time to build up our credit. Also renting is an unknown. We could not get a decent apartment for $750.00 per month ( our mortgage payment)
Even if we did find some place, the rents can be raised. It's unstable. With the mortgage we know it will remain the same.

If for some horrible circumstance, we would need to leave our home, we could sell it for a profit. Our area has not been hit with the housing problems other places have.
( foreclosure did go up this year to 2.5%)

I realize it is a chance we have to take, but it is one we are willing to accept.

* my state has unlimited homestead deduction

[HHM]

I hate to say it, but all those reasons you stated are reasons NOT to reaffirm.

I really cannot think of any benefit to reaffirming a mortgage.

[IBroke]

This is why I reaffirmed. I do think there are some situations where it might be the best choice.
My husband and I are older. I will be getting Social Security starting in the spring. My check will cover our mortgage payment.
Our house payment is not much, we have about $35,000 in equity* as well. My husband has a stable job. It doesn't pay a lot, but it is stable.
We filed BK because I lost my business due to the recession.
We don't have as much time to build up our credit. Also renting is an unknown. We could not get a decent apartment for $750.00 per month ( our mortgage payment)
Even if we did find some place, the rents can be raised. It's unstable. With the mortgage we know it will remain the same.

If for some horrible circumstance, we would need to leave our home, we could sell it for a profit. Our area has not been hit with the housing problems other places have.
( foreclosure did go up this year to 2.5%)

I realize it is a chance we have to take, but it is one we are willing to accept.

* my state has unlimited homestead deduction

Sorry, but it seems you fail to realize that NOT reaffirming does NOT mean "moving out" or "giving up the house".

It seems that many people don't understand that fact.

[helpmeout]

I've read dozens of negative comments about reaffirming a mortgage. If a person is filing Chap. 7......Let me ask....are there any positives....reasons that you would want to reaffirm?

DM

Sure, you aren't upside down and owe $20K or less on the mortgage and have unlimited homestead exemption. Oh, and the state you live in requires you to reaffirm if you want to keep the house.

Other than that, I can't think of a single reason to reaffirm.

[tcreegan]

Hi all,

Hey helpmeout, I have seen this more than once: Oh, and the state you live in requires you to reaffirm if you want to keep the house.

BK law (federal) has several safeguards to keep people from being forced into a reaffirmation, so it is surprising to me that state law would come in and meddle w/ federal law. Do you know what state has this requirement?

At first I thought it was RuthCB's state....but I looked and it says 'Yukon' ...unless of course I crossed the border to the Canadian forum and didn't notice....

Tom in Colo

[helpmeout]

Hi all,

Hey helpmeout, I have seen this more than once: Oh, and the state you live in requires you to reaffirm if you want to keep the house.

BK law (federal) has several safeguards to keep people from being forced into a reaffirmation, so it is surprising to me that state law would come in and meddle w/ federal law. Do you know what state has this requirement?

At first I thought it was RuthCB's state....but I looked and it says 'Yukon' ...unless of course I crossed the border to the Canadian forum and didn't notice....

Tom in Colo

There was a poster here who had to reaffirm if she wanted to keep the house. Also, some mortgages do put in there that borrower is in default if they file for bankruptcy.

[IBroke]

Also, some mortgages do put in there that borrower is in default if they file for bankruptcy.

According to "our" great attorney despritfreya here on bkforum, these clauses in the mortgage-agreements are null and void. I think I read that in one of his posts.

[tcreegan]

Hi all,

Hey helpmeout, There was a poster here who had to reaffirm if she wanted to keep the house. ....remember the state?

Also, some mortgages do put in there that borrower is in default if they file for bankruptcy. ....lots of courts have ruled that this clause can't be invoked, the BK itself cannot be a breach of contract.....as long as the debtor made an effort to reaffirm and are current on payments, kept insurance, etc

I think there are a lot of 'urban ledgends' in this area of BK, looking for some cases w/ specifics.....

Tom in Colo

[kw1025]

The only good thing i can think of in a re-aff is a possible better modification of the original loan terms. You may be able to get much better terms that you had with the previous mortgage that continues with the ride thru. I think sometimes avoiding any responsibility in regards to "being on the hook" can be bad for us. Sometimes it is good to take responsibility and not be afraid of the future. Just don't make the type of mistakes you may have made in the past.

[debee]

Despritfreya started a thread earlier today about circuit differences when it comes to reaffirming mortgages. According to that thread, the courts in at least one other circuit (11th) have determined that the lender can foreclose if you don't reaffirm the mortgage when the lender requires it.

Map to the thread: http://www.bkforum.com/showthread.ph...irm-A-Mortgage