I really appreciate the insight from you guys, i have decided not to reaffirm! I did have one last question, what if an individual wasnt upside down on their mortgage. Example, they have a house worth $200,000 and the owe $175,000. How would reaffirming affect them? Again, i just really appreciate everything!
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Already answered...
To actually "sell" it, (and not be a short sale), you have to pay it off either way, whether or not you reaffirm.
The difference between reaffirming and not reaffirming is that if you go to sell the house, and it is worth less than you owe and you do a short sale (the bank still needs to agree to the sale, both the 1st and the 2nd), the bank cannot hold you responsible for the difference. But also, if the home appreciates in value, and eventually you would make money on a sale, you get to keep that money even if you don't reaffirm.
In essence, your ownership of the home does NOT change if you don't reaffirm. As such, there is NEVER any reason to reaffirm a mortgage.Comment
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