This deals with bankruptcy in the state of ohio.
We had our meeting with the creditors yesterday and we were presented with 2 reaffirmation agreements for our mortgage. One was from the bankruptcy court and one was from 5/3 Bank, the lender. The agreement from 5/3 stated that if we did not sign their reaffirmation agreement they would not "service the loan" any longer; they would not report to the credit bureaus when payments are made, we could not contact customer service for information on the loan, they would not send us coupon books, that they could file foreclosure at any time without notification, and any arrangements with them would have to be made through an attorney. I have never heard of this, is this legal...or normal.
We would like to stay in the house and continue making payments but are hesitant to sign a reaffirmation agreement with the lender. However, it seems as though they will not continue to service the loan without the agreement being signed. (i.e. will they continue making our escrow payments for taxes and insurance) But we also know that if we do sign it and then at a later date decide to not continue making payments, etc we would then be "on the hook" for any deficiency balance.
Any thoughts, information would be greatly appreciated.
Thanks!

