topic Re: Needing disclosure in reaffirmation agreement interpreted before i sign. in Bankruptcy

Needing disclosure in reaffirmation agreement interpreted before i sign.

Anonymous — Fri, 20 Mar 2015 04:58:23 GMT

I received a reaffirmation agreement today from my lawyer on my mortgage that i requested. Wanting to reaffirm for various reasons. My mortgage has proposed to drop the monthly principal note down $200/mth, and lowering the interest rate/APR down by 4%, should i agree to the agreement. I did not ask for this, expect it, etc. But am happy they have offered to do so.

Now. Upon reading over everything with a fine tooth comb(before siging), it states the lender is offering a 'permanent rate reduction from the orginal contract rate", and its marked that this new principal note will be 'fixed' not "variable/adjustable". Then it states this....

"....Your monthly payments may vary or change overtime depending on the terms of the reaffirmed Note, and as applicable, the Mortgage, which may include, without limitation, an escrow requirement, an adjustable rate provision, an interest only provision, provisions which require you to reimburse the Creditor for fees and other charges it incurs, or a balloon payment provision. You will be provided with prior written notice of all monthly payment changes. Timely payment of all such amounts will remain the responsibilty of the Debtor(s).

Is this saying that they can and may change the "fixed" rate on me, and just surprise me by mail, telling me so? Doesnt fixed mean it stays...why the mention of balloon payment and all the other little provisions. The "escrow requirement" i would be fine with. Im paying that now. If anyone can break this down to me (the provisions), please do so. I have emailed my attorney, however is on a little vacation.

Re: Needing disclosure in reaffirmation agreement interpreted before i sign.

DaveInAZ — Fri, 20 Mar 2015 17:28:14 GMT

No, if it indicate the interest rate and states "Fixed Rate" at the top of the agreement you should be good to go. That paragraph is just "boiler plate" language that refers to any possible conditions that might apply to any mortgage they offer. "depending on the terms of the reaffirmed Note . . .. which may include...." are the key boiler plate language. The reffirmation terms offer may include various things, but if at the top of your agreement clearly states Fixed Rate and the monthly payment then yours doesn't include them.

Your attorney will be reviewing the reffirmation agreement as he also has to sign it and also sign an affidavit to the Court that he has reviewed it and advised you of the consequences.

Re: Needing disclosure in reaffirmation agreement interpreted before i sign.

0REDSOX7 — Fri, 20 Mar 2015 18:47:50 GMT

Your fixed amount should always be the same (principle and interest) but if you have an escrow - the amount put to each month in your escrow may change, thus changing your total monthly payment.

My payment on my mortgage just went up 11 dollars for next month because my property taxes went up and my escrow has to maintain a certain amount.

Re: Needing disclosure in reaffirmation agreement interpreted before i sign.

Anonymous — Fri, 20 Mar 2015 22:42:59 GMT

It clearly states 'Fixed' at the top and through out documents. I called mortgage company this morning. DaveinAZ, they basically said what you've said here. I should be good to go. I'm sure they will be requiring an escrow setup, as they did prior to my filing when we entered a modification. Thats perfectly fine with me. I was thinking today how i have lived in my home since 2006 and never have i filed Homestead Exemption. I need to do so/look into that! That would help save some $$$.