I know when we signed our Agreement with our Attorney his fee included 2 Reaffirmation Agreements. I haven't discussed this issue with him, yet, as we are not filing until 9/30/09.
I did find the following. Content copying of the below Article is not allowed. So here is the URL:
On Page Two it specifically states that Reaffirmation Agreements are not required by bankruptcy law or by any other law.
I have mixed emotions about this as our State's (Arkansas) Real Estate did not depreciate a large amount. We closed on our home 12/20/07 & looking at realtor.com, comparing prices sold & the 3 homes on just our street listed on the market in the past week, our home has depreciated less than $10,000. I know the 3 homes will not sell for listing price, but thought I would include them. If I don't use the 3 that just went on the market, depreciated value is around $15,000. They are still building new homes in our subdivision.
Luci
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Hi, they never applied to lift the stay and have been quite for the 6 months since I filed, not a peep.Originally posted by eddiep View Post
Yes, it is confusing.
The question about whether it is a local rule or not is a good one. Does anyone here know how one would find out?Leave a comment:
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Jazz
You were able to talk with your bank? Did the stay get lifted?
To clarify my lawyer said I HAVE to reaffirm if I want to keep the house. Do you think this is something specific to my local bk court rules? It seems everbody here says not to reaffirm and their lawyers advise against signing but my lawyer said the opposite. I'm not sure why.Leave a comment:
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There seems to be a real difference of opinion on this.Originally posted by eddiep View Post
I have seen several replies that say that you can reaffirm anytime before the discharge.
I have also seen that as long as you stay current they cannot foreclose.
I WOULD reaffirm if it was a certainty that they might foreclose irrespective of my situation but it seems SO unlikely that any bank would take action on a current loan.
Is there a definitive answer on this question from a legal not practical perspective?
My second with Wells fargo sent me a reaffirmation letter early on. My attorney said not to sign anything unless they pressed. They have not followed up but i am only one month behind on them.
My first is with Wachovia, essentially Wells fargo and they have never said a word.
In fact I spoke to them today and let them know I was waiting for my discharge. They said that when I get it they would work with me on a modification.
That's why I am so intersted in a discharge date.Leave a comment:
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Reaffirming or let go
The lawyer told us as long as the payments are made, that they had to honor the terms of the original mortgage. Even if its not reaffirmed. Not sure if that's a federal or state thing though.Leave a comment:
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Planning to stay. But you never know how circumstances will change. Reaffirming doesn't make sense at all in this situation, particularly with the SBA thing looming. No intentions of doing so. The fact that there is an interest only on the first that ends when the kids graduate highschool is what brings up the thought about what to do at that point if there is no "mortgage or rental credt."
Your suggestion was a good one. Thanks.Leave a comment:
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When we met with our lawyer for our first meeting he said we had to reaffirm or let the house go. Has anybody else ever been told this or is this just a local issue?Leave a comment:
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I can only think of this in practical terms.Originally posted by amei View Post
Make your payment and keep copies of checks, keep reciepts of house payments and stay current all the time.
Years from now you can explain the BK away and prove to a new lender or a new landlord that irrespective of the credit report you have always paid your mortgage.
I think that the risk of reaffirming in this economy is dangerous and is riskier than the alternative.
Besides, maybe you will want to stay in the home. I sure as heck am not going to reaffirm.Leave a comment:
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I can only think of this in practical terms.Originally posted by amei View Post
Make your payment and keep copies of checks, keep reciepts of house payments and stay current all the time.
Years from now you can explain the BK away and prove to a new lender or a new landlord that irrespective of the credit report you have always paid your mortgage.
I think that the risk of reaffirming in this economy is dangerous and is riskier than the alternative.
Besides, maybe you will want to stay in the home. I sure as heck am not going to reaffirm.Leave a comment:
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Not Reaffirming - Long Term Effects
I spoke with the attorney and right now due to a huge SBA loan, its best not to reaffirm, however the goal is to stay in the house for a few years, let the kids finish high school (there is an interest only first mortgage) and then at that point buy another house and walk away if necessary as the mortgage debt is never reaffirmed.
My concern is that based on my understanding there will be no mortgage or rent shown on the credit report, so at that point getting a new loan will be extremely difficult.
The lawyer is concerned with the here and now and thinks its not a big deal. I think it's important to be educated and know what your getting yourself into.
Anyone have any experience with this in the past? Were you able to rent or get a new mortgage without a lot of difficulty? Your feedback is appreciated.
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