Please define Reaffirm?

What is the name of your state? new hampshire

I have read that in order to reaffirm a mortgage after bankruptcy you need to be current on the payments.
Since I filed ch 13 and have kept the house. I am paying on the arrears and should be current by the time the bankruptcy ends in 2 years. What I need to know is what reaffirm means.. do I have to qualify for a new mortgage or refinance? If so...How can I do that if I have just gotten out of bankruptcy?

[Ladynred]

Reaffirmation is usually for CH 7 cases, since CH 13 is primarily for paying SECURED debts first thru the 3-5 year plan.

Has the bank mentioned you'd have to reaffirm after the 13 is discharged ?? Basically, it means you sign another contract that states you'll keep paying on their terms, just as you did when you got the mortgage in the first place.

Hi. Sorry to be a pain, but I'm working to get all this info together and every now and then I get confused and overly stressed:-) Filing a joint Chapter 7, The housing exemption in Az is 100,000. We are current on our mortgage and owe about 110,000. The house is probably worth 180-190 tops. We also have a 40,000 home equity loan from our bank, (not the same bank as our mortgage).

1) Does the home equity loan count towards this exemption? (It is secured and we want to keep paying on it)
2) Does this mean that we put $30,000 so our house should be safe and be able to keep the house?
3) Does the house have to be officially appraised?
3) Do we have to reaffirm? (Just reading about that somewhere here)

Thanks, LLP

[Ladynred]

1 - The 2 loans together eats up your equity. You have to base the value based on a quick-sale , not a true appraisal. Any RE agent could to that for you.

2 - don't understand what you're saying here ...

3- see answer #1

4 - Yes, if you want to keep the house, you'd better reaffirm it.

[HomeGuru]

[quote]Originally posted by Ladynred
[b]Reaffirmation is usually for CH 7 cases, since CH 13 is primarily for paying SECURED debts first thru the 3-5 year plan.

Has the bank mentioned you'd have to reaffirm after the 13 is discharged ?? Basically, it means you sign another contract that states you'll keep paying on their terms, just as you did when you got the mortgage in the first place.

**A: there are many loans that are reaffirmed in a BK 13.
The amount in arrears is put into the 3-5 year plan and the mortgagor signs a reaffirmation agreement, agreeing to pay the current payment when due each month. Thus the mortgagor will have 2 payments consisting of the contracted payment per the affirmation agreement and the BK payment for the amount in arrears. The reaffirmation agreement is signed early on within months of the filing and not at the time or after discharge.
In the writer's case, the response on reaffirmation by my girl Ladynred is correct. You need not get a new loan or refinance the existing loan.

[HomeGuru]

Originally posted by cinbad
What is the name of your state? new hampshire

What I need to know is what reaffirm means..

**A: Ladyinred is my girlfriend.
I say to her, "jump in bed Baby and let me reaffirm my love for you!"

Thanks for your reply. I noticed I numbered my questions. 1,2,3,3,:-) What I meant by my second question was, then with those figures, and including the home equity loan, would we qualify for the 100,000 homestead exemption in Arizona and be able to keep our home.

Take Care. LLP

be patient unknowncaller......i think they are busy (wink)
This answers my question....thanks Guru and Ladyinred....you make a good team!!

[Ladynred]

HG.. you're a devil

[HomeGuru]

Originally posted by Ladynred
HG.. you're a devil

**A: Ya know, I'm hot girlfriend.