Home Mortage Company and Reafirmation

What is the name of your state? Florida
We have filed Chapter 7 in Florida. We have had the 341 meeeting 90 days ago. We signed to reafirm a car loan with no problems. Our mortage Company Wells Fargo will not accept or sign a reafirment the mortage. We have never been late on the mortage payment and are current with them. What does this mean?

Our attorney said she could file the paper work to reafirm the mortage for another 265.00 but the mortage companydoes not have to sign or accept it.

Does this mean we could loose out house or do we just keep paying the mortage company on time like we have been doing.

[Elmo-1]

The $265 is a little stiff, but this is your home, so be safe & get the attorney to draw up the paperwork and let her attempt to get the bank to sign it.

If the bank doesn't want to sign it, then that's their perogative. Their refusal only means that you can walk away without owing anythng, not necessarily that they can foreclose at anytime. Their refusal only increases their exposure and risk. If you have equity, they may view this as insurance they will get their money at a Trustee or Sherriff's sale which would provide them with a lower risk (non-BK) debtor. But they still have to get court approval to foreclose and if you're current, the odds are in your favor.

If you honor your contract and stay current on all payments, it would be tough, if not impossible, to get a judge to allow foreclosure proceedings to begin just because you're in BK. But dont be even one day late with your payments. Remember, the grace period is for late charges only and constantly paying after the due date, or just before the grace period deadline, is not honoring the contract. This could influence a judge to grant the mortgage company's petition to foreclose.

Ask your attorney about recent histories regarding local judges and non-reaffirmed mortgages in BK. See if she can network with her comrads to find out if there have been any cases where BK clients who stayed current without reaffirming were ever foreclosed on. My guess is never, to extremely rare, and when it happened, the mortgage company had extremely good reasons. On the other hand, why worry about something you can't control. Just be prepared for all possibilities, dissappointments included. Do your homework and expect to win!

WF holds my first mortgage. I am 100% current. My lawyer said he would get a reaffirmation agreement for me to sign. This never happened. I was on the phone with my lawyer once a week, sent him emails, etc. trying to get this paperwork. I have a second mortgage with Household and that went fine - my lawyer sent me papers to sign, boom and it was done. Then I got my discharge in the mail. Finally, I grew a brain and called WF customer service myself. While they were very nice, they did say it was too late to reaffirm because I was already discharged and they NEVER SEND YOUR LAWYER the paperwork. Apparently you have to contact them directly yourself and they will give you a local lawyer who will draw up the paperwork for you.

Fortunately, WF is still sending what they classify as "informational statements" that look just like regular statements with the payment coupon. The statement contains the mini-miranda and clearly states that "should you decide to voluntarily continue making payments" which I think is wonderful. I just pulled all three of my Credit Reports two month post discharge and they all say "paying as agreed". This is my experience and I agree with Elmo - you can either pay the lawyer or just continue paying WF and you should be just fine. If WF is not sending "informational statements" I suggest you pay them on-line