Posted on: 01st Mar, 2010 10:14 am
Hi, we are fling BK this week. I am NOT behind on our mortgage however, the mortgage co, TCF Bank reduced our interest rate to lower the payment last year, when I was employed full time ( now part time) That contract ends in sept 2010. They said that in Sept we will re-write the loan. The loan is now $51,000 top heavy as the house lost value. In my reaffirmation letter to them that is sent to TCF Bnak do we HAVE to reaffirm at the total amoutn that is too much or can we asked for the appraised value that is $51,000 less? I want to keep our home but not at the amount that they want. Even the county assesment that came in last week showed $51,000 less.
Hi lmiller!
Welcome to forums!
If you want to reaffirm your mortgage after filing bankruptcy, then you will become personally liable for the whole amount. The lender will not accept a reaffirmation on the present appraised value of the property. After reaffirming your mortgage, you may negotiate with your lender whether or not he would lower your principle balance on the mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you want to reaffirm your mortgage after filing bankruptcy, then you will become personally liable for the whole amount. The lender will not accept a reaffirmation on the present appraised value of the property. After reaffirming your mortgage, you may negotiate with your lender whether or not he would lower your principle balance on the mortgage.
Feel free to ask if you've further queries.
Sussane
I guess what I am asking is this. After reading eveything I can find...I am not nor ever have been late on any mortgage payments. I understand that if I include the house in the BK, in a sense I am protected from any liability BUT, if I continue to pay the monthly mortgage after the BK, the issue arises in Sept when the loan MUST be rewritten. This lower interest rate was a temp thing good only til Ssept. So in a sense a hand is forced to rewrite the loan. My question then is, can they rewrite the loan for $51k more than the house is worth or will they lower the principal. I will NOT sign an affirmation if they dont lower the principal, Ill wait it out and move at that point.
It will be the lender's discretion whether or not they would lower your principal balance while the loan is rewritten. If you reaffirm the mortgage, then there are chances that the lender may lower it. If you don't reaffirm it, then the lender will not be bothered to lower the balance as you will not be personally liable for the loan.