Posted: Tue Aug 18, 2009 5:51 am Post subject: REFI AFTER CHAPT 13?
I AM CURRENTLY FILING CHAPT. 13. HOWEVER, MY MORTGAGE OF 249K, AND 1639 A MONTH, MAY STILL BE TOO HIGH. I AM WILLING TO PAY 30K TO 40K UP FRONT TO REFI AND BRING THE PRINCIPLE DOWN. IS THIS POSSIBLE? HOW DO I BEGIN? I HAVE AN INTEREST RATE OF 6.5 PERCENT.
Have you already filed chapter 13 bankruptcy? In case you have, it will be difficult for you to refinance to avail the current low interest rates. Most of the lenders will not be ready to lend you money due to the bankruptcy filing. You need to continue making payments at least for 6 months under the chapter 13 plan in order to qualify for a new loan. If you think you will not be able to afford the chapter 13 plan, you should talk with your trustee and your creditors. If you know you cannot afford this repayment plan, there's no point in accepting it.
What stage you are at right now?
There will be sharp drop in credit score due to Chap 13 and this has negative impact on your refinance approval. Yet it wil be a good option to enquire if your proceedings have not completed much. But you must not loose on the fees as it looks a difficult case.
If you have almost completed CH13, you will be have o look for subprime lender who will be charging you high interest rates that too at least 6 months after declaration!
All the best and please provide more specific information!
LOSXRAY
