Reaffirming mortgage in our chapter 7.

[Anonymous]

So I know that reaffirmation has been covered repeatedly but I'm looking for help in our case in particular. We are filing chapter 7 (like tomorrow) and originally thought we would not reaffirm our morgage. We owe $114,000 and the appraisal is $141,000. We are able to continue to pay our payments (have never missed one or been late). Our payments are less than we would pay for rent in our area. We do intend to stay here for at least a few more years. I'm now questioning if we should in fact reaffirm. If nothing more than the fact that making our payments will reflect positively on our credit reports? 

Anyone have time to share thoughts on the subject? Any chance we could negotiate a lower interest rate? I'm hoping to decide by tomorrow when papers are filed. I know totally short notice. 

TIA!

[StartingOver10]

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@Anonymous wrote:

So I know that reaffirmation has been covered repeatedly but I'm looking for help in our case in particular. We are filing chapter 7 (like tomorrow) and originally thought we would not reaffirm our morgage. We owe $114,000 and the appraisal is $141,000. We are able to continue to pay our payments (have never missed one or been late). Our payments are less than we would pay for rent in our area. We do intend to stay here for at least a few more years. I'm now questioning if we should in fact reaffirm. If nothing more than the fact that making our payments will reflect positively on our credit reports? 

Anyone have time to share thoughts on the subject? Any chance we could negotiate a lower interest rate? I'm hoping to decide by tomorrow when papers are filed. I know totally short notice. 

TIA!

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First, understand that even if you do reaffirm your mortgage, the lender/servicer is under no obligation to report your payments to the CRA's. You could insert the language into the reaffirmation agreement that they will report it. Also, remember the lender and you and your attorney have to sign the reaffirmation within the time frame allowed and it has to be filed with the court and approved. Your attorney may not agree to sign your reaffirmation at all.

If you don't reaffirm but continue to make payments on time, keep excellent records of your payments.  The lender/servicer can not foreclose unless you stop paying.

[0REDSOX7]

We were in the same boat as you...did not reaffirm but had some equity in the home (not enough for the Trustee to do anything).  We continue to make payments.  Depending on your lender, you may get "informational statements" showing the amount due, balance, etc.

Both B of A, now Nationstar, send these statements that say they are for informational purposes only and not an attempt to collect the debt.  They also have some language in there that they reserve the right to enfore the lien should they need to, but, I have been discharged for over a year and a half with no issues.  Taxes gets paid.  Insurance gets paid.

[Anonymous]

Thanks for the thoughts. I asked the office a couple of questions and the they indicated that Chase will likely work with us if we wish to reaffirm. They also said that Chase is generally willing to report to credit bureaus. So, I guess all we can do is ask. 

I appreciate all the feedback. It's been a LONG time since we started considering chapter 7. We are FINALLY filed!!!