I posted this under sticky but need a quick response, so I am reposting here...
I was planning to reaffirm my mortgage, but after reading through this forum (what a great resource!), I understand I don't have to and probably shouldn't. I live in Illinois and I want to keep my house. That said, here's the issue: My tax records say my home is worth 90,000. My first mortgage is current. I owe about 65,000 on it and have it financed through a bank. It has been over a month since my 341 and I had not heard anything regarding a reaffirmation, so I started thinking the bank just didn't want to. Well, today I got papers from my attorney telling me to immediately sign and send back so they can be filed before the discharge date. My interest rate is not great at 7.%, but I can live with it.
My second mortgage is about 23,000 at (I think) 12% to Citimortgage. I am not going to reaffirm this one for sure. I am a couple of months behind on this one--I was hoping to modify it. The way this one is set up is kind of like revolving credit--it's strange. Anyhow, I would like to get a low interest on this loan and set it up like a 'regular' mortgage, not like a revolving account or whatever it is that Citi does--if I could do that, I may reaffirm if that's what it takes to seal the deal. I can afford to make the payments; I'd just like to get a fair deal. I told my attorney right off the bat when I filed that I wanted to modify the mortgage(s). I thought he would go to bat for me, but he basically said you can't do that in a 7.
So, my question(s) is (are), does anyone have experience with Citimortgage modifying their mortgages? And should I just be content with the 7% on the first mortgage or try to get a better deal? AND, when would I do that? Since my attorney won't fight for a modification and the banks can't talk to me, what are my choices? Not to beat it to death, but please clarify/confirm for me: the banks have to go thru the same process to foreclose with or without the reaffirmation, and in the same manner as if you had never filed for bk. If you stay current--no problem, the home is yours to sell, remodel, whatever. Not that I plan to, but if I would miss a payment, the bank would treat it the same way they would if I had never filed bk (which I think would mean they send a late notice, you catch it up, all is well). Some posters have me sort of scared that without that reaff, miss one payment and your house can be taken in a matter of days. I just think that if the bank wouldn't foreclose for one missed payment before the bk, they wouldn't foreclose for one missed payment after the bk. Thanks for any help!
I was planning to reaffirm my mortgage, but after reading through this forum (what a great resource!), I understand I don't have to and probably shouldn't. I live in Illinois and I want to keep my house. That said, here's the issue: My tax records say my home is worth 90,000. My first mortgage is current. I owe about 65,000 on it and have it financed through a bank. It has been over a month since my 341 and I had not heard anything regarding a reaffirmation, so I started thinking the bank just didn't want to. Well, today I got papers from my attorney telling me to immediately sign and send back so they can be filed before the discharge date. My interest rate is not great at 7.%, but I can live with it.
My second mortgage is about 23,000 at (I think) 12% to Citimortgage. I am not going to reaffirm this one for sure. I am a couple of months behind on this one--I was hoping to modify it. The way this one is set up is kind of like revolving credit--it's strange. Anyhow, I would like to get a low interest on this loan and set it up like a 'regular' mortgage, not like a revolving account or whatever it is that Citi does--if I could do that, I may reaffirm if that's what it takes to seal the deal. I can afford to make the payments; I'd just like to get a fair deal. I told my attorney right off the bat when I filed that I wanted to modify the mortgage(s). I thought he would go to bat for me, but he basically said you can't do that in a 7.
So, my question(s) is (are), does anyone have experience with Citimortgage modifying their mortgages? And should I just be content with the 7% on the first mortgage or try to get a better deal? AND, when would I do that? Since my attorney won't fight for a modification and the banks can't talk to me, what are my choices? Not to beat it to death, but please clarify/confirm for me: the banks have to go thru the same process to foreclose with or without the reaffirmation, and in the same manner as if you had never filed for bk. If you stay current--no problem, the home is yours to sell, remodel, whatever. Not that I plan to, but if I would miss a payment, the bank would treat it the same way they would if I had never filed bk (which I think would mean they send a late notice, you catch it up, all is well). Some posters have me sort of scared that without that reaff, miss one payment and your house can be taken in a matter of days. I just think that if the bank wouldn't foreclose for one missed payment before the bk, they wouldn't foreclose for one missed payment after the bk. Thanks for any help!
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