We filed bankruptcy & it discharged on 11/07. With the new law the home needs to be included in the bk. We have 2 loans 1st mortgage for $230,000-7.5% due to adjust in May of this year & a 2nd mortgage for $57,000-12.69%. We did not sign either of the reaffirmation aggreements because we were afraid of what the payment will be once adjusted. We were told by Option one (current mtg co.) that they can not help us in any way because we did not sign the reaffs & we do understand that. However they did say that we could do a short sale/short refi. We are current on our payments but they state at this time it doesnt matter if we are late or current, they would still consider a short sale/short refi. We did find a lender who is willing to refinance us at a decent rate even this recent after our bankruptcy. My question is do you think the mortgage company would be willing to forgive $65,000+ or take a chance of us walking away and them losing more? Value of home $245,000-owe $287,000+.