reffirm vs let it go

[miss puff]

Thank you SF. That was exactly what I needed to know.

Can anyone define "payments on time"? What I mean is on a house payment it is due on the first but you have that 15 day grace period which is where we are always paying it. Do you still get that 15 days if you are not reafirming or does it HAVE to be paid on the first. Thanks

[SinkingFast]

I haven't personally done it, but I've read about 2nd foreclosing.

If the 2nd Forecloses, it forces the sale of the house regardless.

If you don't reaffirm, you're still bound by the original terms of the contract. Only difference is you MUST stay current to continue to live there. If your Lender typically waits until you're 6 payments in default before they begin Foreclosure proceedings, you won't get that luxury. First missed payment, they will start the process.

From what I've read about your loans in the other section of the Forum, it appears they saw you coming. You are the victim of Predatory Lending practices. Teaser rates and interest only to start. Huge adjustments/spreads.

Personally, I'd start looking to move and let them have that house back. Let it go in your BK. Ultimately, the call is yours, tho. And we'll support you no matter what you decide.

[miss puff]

So I have heard many say that if they "reaffirm" their mortgage that they are bound by the original contract of the loan. But.... what if we let the house go with the BK and continue to make payments on it for oh lets say till April. Then, according to the original loan note the ARM will adjust and the payment will go up, like considerably! If I didn't reaffirm, could I continue with just the payment that I am currently making or will I have to choke up the extra $400 per month after April when the rate changes even if I didn't reaffirm?

Also, has anyone ever foreclosed on only the second mortgage? If so, how exactly does that work?

Did I make sense?