Can they take my house if I am current?

They won't foreclose, even if you don't do a reaffirmation agreement, if you keep current on payments.

You do not need to sign a Reaffirmation Agreement for real estate. Do not sign a Reaffirmation Agreement! If you are current with your payments, there is nothing they can do.

No, they can't just take your house. And they have no reason to, so long as you're current on your payments. If you do sign a reaffirmation agreement, it could have negative consequences. If you default on your loan and your mortgage lender forecloses, they can get a judgment for the deficiency. That would be bad. On the other hand, if you do not sign a reaffirmation agreement and default on the loan, your lender cannot get a deficiency judgment if it forecloses. Additionally, if you're not represented, any reaffirmation agreement must be approved by the bankruptcy court. So it's up to you, but don't let your mortgage lender bully you around.

The bank is insisting on a reaffirmation because they know you & your paralegal are ignorant of the law. Had you been represented, a competent bankruptcy attorney could have kept you from worrying about this problem & even helped you to obtain a lower monthly mortgage payment. A reaffirmation of a real estate loan is almost always a bad move because you could be liable for a lot of money if there is a subsequent foreclosure and the property sells at auction for less than the mortgage balance.

Read the definition of default in your mortgage. It's illegal to have bankruptcy as a definition of default but you want to check that you didn't do anything else which is a default. If you didn't default, then they can't foreclose.