More Questions about Reaffirming Mortgage

[kittywalt]

We had our 341 meeting on Tuesday and all went pretty well....now just waiting for dates, but we haven't received the agreement to reaffirm our mortgage. I've read the posts about why not to reaffirm, but we absolutely want to keep our house. Our attorney is really vague about the reaffirming, saying in some cases they are never sent especially on first mortgages, it's just a formality. My question is what happens if we never get an agreement...we aren't behind on our payments at all. Do they have the right to just come in and take the house at any moment? Are we good as long as we meet the terms of the loan? We had the loan modified and finalized before filing bk (we got the okay from our loan mod person at GMAC that it was okay to file BK - that everything was entered in their system and final) just confused on what to do and I know that if I call the mortgage company they won't talk to me about it and like I said our attorney is vague.

Any insight would be appreciated.

[shark66]

A good place to start:

http://www.bkforum.com/showthread.ph...-very-bad-idea.

The (very short) bottom line is that when one does not re-affirm the mortgage they can walk away from the house anytime with no penalties whatsoever because the debt was discharged in Ch. 7

As long as you maintain the "pay and stay" status no bank will go after you. Period.

I understand that right now you absolutely want to keep the house. Do bear in mind that life happens. You might (hopefully not but one never knows) get into a set of circumstances where you'd have to walk away from the house.

Chapter 7, if one plays their cards right, is a road to freedom. No need to burden yourself with any type of re-affirmation agreement in this new and better environment.

Good luck.

[dneil]

I did not reaffirm. We kept our home without the personal liability. If they want us to sign an agreement like that (the banks) then they need to cut us a better break on the interest rate.

I have called numerous attorneys here in Michigan, and every one of them have continually told me that they do NOT recommend a person signing a reaffirmation agreement. You paid for bankruptcy, why turn around and open yourself up to being sued if something happens down the road and you can't make the payments? It just doesn't make sense.

Good Luck to you

[despritfreya]

OP,

I am going to tell you this. I know for a fact that there is simply no requirement to reaffirm a mortgage in the 9th Circuit and that in Arizona there has never been reported case of a foreclosure due to the failure to reaffirm. DO NOT reaffirm. If your attny tells you that you must, PM me with the name of that attny. Just make your payments and you will keep your home.

Des.

[HHM]

I concur, there is no "requirement" to reaffirm and I cannot think of any benefit to doing so.

[tcreegan]

Hi kittywalt,

What I want to know is how you got a loan mod out of GMAC! I went around and around, got nowhere and gave up after 6 months...

Sounds like GMAC wasn't too concerned about the BK, stay current, keep up insurance, you should be fine.

Kudos on getting the loan mod!

Tom in Colo