Reaffirming a debt means that you retain possession of your property and continue making payments on your loan with no modifications. To determine whether this is your best course of action, ask yourself these questions:
1. Once your other debts are gone, do you realistically have the money to continue making the payments?
2. Is the manufactured home worth as much as you owe on it?
3. Is your interest rate in sync with today`s market?
4. Are your mortgage payments current?
If you answered yes to all four questions, reaffirmation may be a good choice.
Refinance Your Mortgage
Consider refinancing your mortgage and keeping your manufactured home if you have adequate resources. You may have more bargaining power with your lender than you know.
Creditors want to make profits. Since there are costs associated with taking your property and resseling it, many lenders are willing to negotiate. This is especially true in the case of manufactured homes, as their value may depreciate over time. Sit down with your banker, let her know you are considering filling bankruptcy, and propose terms that you believe are reasonable. She may accept, come back with a modification or walk away.
Discharge Your Debt
If your lender is uncooperative or if you have lost your job and simply can no longer afford the home, discharging you debt may be the only option left. In this scenario, the lender takes your home and you walk away from the debt.
