Expert: Mark J. Markus- California Bankruptcy Attorney - 3/20/2008

Question
QUESTION: I live in MA and have been advised not to reaffirm my two mortgages or cars.  If I chose not to reaffirm, can the lenders come after me and take our house, even if we remain current on payments?

ANSWER: Yes for the cars, no on the house (mortgages).

---------- FOLLOW-UP ----------

QUESTION: Thanks

So legally there is no recourse for a mortgage to take the house unless we fall behind on payments?

Also, do the repo rules on the cars vary from state to state?  I thought I read somewhere that some state laws prohibt repo unless you are late on a payment

Thanks again  

Answer
Yes, that is my understanding, with respect to debts secured by real property.

On the vehicles, I should have been more clear.  If you don't do a reaffirmation agreement, then the creditor has the right to take whatever steps are allowed under applicable state law to repossess, etc.