Question on Reaffirming Mortgage

A Chapter 7 does not help you save your home. Unless you work it out with your lender (and it does not appear the lender wants to work it out) the lender will eventually foreclose. The foreclosure process is based upon State law and typically can take 3+ months once the process is started. You need to research the process for your jurisdiction.

A reaffirmation agreement basically is an agreement that says, "despite my bk I will pay you and if I don't you can sue the crap out of me."

It is not wise, under any stretch of the imagination, to sign a reaffirmation agreement as it relates to a mortgage. Why on earth would you want to re-obligate yourself to such a LARGE debt and run the risk that you will get sued for non payment down the road? Even in an anti-deficiency jurisdiction signing such an agreement is, IMHO just plain dumb. Further, since you are not current I do not believe a reaff is possible.

If you really want to save the home and can afford the NORMAL monthly mortgage payment then you should be looking at a Chapter 13. A Chapter 13 allows you to "cure and maintain" - cure the arrears over 5 years by making monthly payments to a bk trustee, while maintaining normal monthly mortgage payments directly to the lender. (In some jurisdictions the mortgage payment is sent to the bk trustee and the trustee sends it to the lender.)

I hope this helped.

Best regards.

Des.

[QUOTE=despritfreya;750796]A Chapter 7 does not help you save your home. Unless you work it out with your lender (and it does not appear the lender wants to work it out) the lender will eventually foreclose. The foreclosure process is based upon State law and typically can take 3+ months once the process is started. You need to research the process for your jurisdiction.

A reaffirmation agreement basically is an agreement that says, "despite my bk I will pay you and if I don't you can sue the crap out of me."

It is not wise, under any stretch of the imagination, to sign a reaffirmation agreement as it relates to a mortgage. Why on earth would you want to re-obligate yourself to such a LARGE debt and run the risk that you will get sued for non payment down the road? Even in an anti-deficiency jurisdiction signing such an agreement is, IMHO just plain dumb. Further, since you are not current I do not believe a reaff is possible.

If you really want to save the home and can afford the NORMAL monthly mortgage payment then you should be looking at a Chapter 13. A Chapter 13 allows you to "cure and maintain" - cure the arrears over 5 years by making monthly payments to a bk trustee, while maintaining normal monthly mortgage payments directly to the lender. (In some jurisdictions the mortgage payment is sent to the bk trustee and the trustee sends it to the lender.)

I hope this helped.

Best regards.

Des.[/QUOTE]

i don't quite agree with that. it all depends on the circumstances. im in the middle of a 7 and i plan on reaffing.

In response to:

"i don't quite agree with that. it all depends on the circumstances. im in the middle of a 7 and i plan on reaffing."

As an attorney all I can do is give good sound advice. If the recipient of the advice does not want to take it. . . oh well. That is why we are called "counselors at law".

What I can tell you is this. . . If I was the attorney I would tell my client that if they wish to reaffirm fine. But I, as the attorney, will not sign the attorney certification. Not signing the certification will prompt the Court to hold a hearing which the debtor will have to attend. At that hearing the debtor will have to persuade the Judge that reaffirming something that does not need to be reaffirmed is in the debtor's best interest.

Des.