reaffirming a mortgage

What is the name of your state? Ohio

Under what circumstances might a desire for reaffirmation of first and second mortgages not be permitted? I have been late on some payments, but absolutely do not want to lose my house.

I also have a car which I don't care if I lose or not. How would that be handled?

Thank you.

I would say that unless you are behind now and cannot get current they most likely would reaffirm.

If you are filing chapter 7 then you would include all debts including the car, just don't reaffirm the car loan and they will come pick it up after the stay is released.

Thank you very much, totallybroke. Your user name certainly defines me at this point in time. I have another question for you (or anyone else).

When speaking with an attorney, I asked that if I could not keep my house, could I cancel the entire thing and not file the bankruptcy. She told me, no. She said once it is filed I cannot cancel it and I won't know if I will lose my house until it is filed.

I know I really do need to file but my delay has been in the fact that I am afraid I will lose my house. Is it true, do you know, that I won't know until it is filed, and that I cannot cancel it after I have filed, if I find the lender will not reaffirm?

Thank you so much. I am getting more and more nervous everyday about this, which is getting me nowhere.

If you get current on your house payments, the lender will OF COURSE want you to reaffirm.

The lender does not want your house back. Really.

The only way that you wouldn't be "allowed" to reaffirm the house debt is if the bankruptcy trustee thought that doing so would be a big mistake (i.e. you simply cannot afford to do it).

If you do not want to keep the car, quit paying on it and don't reaffirm it. You can contact the lender and make arrangements to turn it back in -- or you can wait a few months and they'll contact you to get it back once the automatic stay is lifted or your discharge is granted, whichever comes first.

Hope this helps!

Thank you, dorenephilpot. I have been a legal secretary in Ohio for 25 years and I doubt that the laws are much different here, at least for my sake I hope not.

I admit I have been late on some of my mortgage payments, but I do make them and I pay all late fees incurred.

Is it true, if you know, that I cannot even find out if I will lose my house until after I file? Is there a way to find out if the mortgage company will reaffirm before I file?

Thanks again.

[Ladynred]

Doreen.. or anyone..

What about her question about 'stopping' the bankruptcy. Can't she ask for a voluntary dismissal ?? Why would the attorney tell her that's not possible ???

If you had it voluntarily dismissed, all collection action would begin again and you wouldn't be able to file again for a while. If you DID file again, your credit report would show TWO bankruptcies instead of one. Like everything else, this has its consequences.

I find it odd that you have been told that you won't find out about the house issue until after you file.

There must be something more to the story that I'm missing.

Are you perhaps over your state's exemption levels on the equity? Is your attorney fearful of that issue?

I believe it's safe to say that if you are current on the mortgage that your lender will be happy to reaffirm.

You can always voluntarily dismiss your BK. That is your right.