how difficult to refinace after ch7?

edgybob · Joined: 06 Jun 2008 Posts: 1 1.79 Dollars($)

Here are the details. We are 27 months into Ch13. We have not missed a mortgage payment. We tried ot renegotiate our 1st mortgage but they would not talk to us because of the BK and because we are not in arrears.
We are experiencing an increase in our expenses (who isn't)and a decrease in our income (who isn't. also) and are thinking about converting to a Ch7 BK.
So here is the real question:
do I continue paying my mortgage payment (Countrywide) and hope after the Ch7 is final I can refinance (our ARM is at 10%); or
do I stop making my payments for 2-3 months so that I am in a better bargaining position to renegotiate my loan.

We also have a 2nd (HSBC).

I would set aside the mortgage money each month so that I could catch up; plus we have so much deferred maintenance we must do before the house falls to pieces.

What are your thoughts?

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi edgybob.

Welcome to the forum.

I cannot suggest you not to make the mortgage payments. You should try to make the payments as long as you can but if you cannot make the payment that is another story altogether.

BTW if you can refinance then why are you think to file bankruptcy chapter-7? If you file chapter-7 then all your nonexempt properties will be sold to pay your due debts. And if you file chapter-7 then you may not be able to refinance with affordable rates and terms.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Jeanette · Posted: Sat Jun 07, 2008 10:21 am Post subject:

Hello Edgybob,

As larry said, do not stop making mortgage payments. Two years after Filing chapter 13 you should not have any problem refinancing if,

1--You have made consecutive payments for 12 months.
2--on mtg and other debt owed
3--make sure there are no judgements
4--Pay off your collection items.

These should all upgrade your score and give you the opportunity to refinance.

Good Luck,

Jeanette Smith
Mortgage Planner
Union Mortgage Group
www.umgva.com
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