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dgraham · Joined: 15 Jan 2007 Posts: 1 1.39 Dollars($)

I am currently in Chapter 13. I have been in program about 14 months now. I need a lender who will refinance my mortgage. HSBC currently has me at 15.95%!! Any suggestions would be greatly appreciated..
Debbie in Tennessee

colin · Posted: Mon Jan 15, 2007 11:23 am Post subject:

Hi Debbie,

Welcome to Mortgagefit forum.

In my opinion it is better to wait for 2 years after filing bankruptcy and many lenders would then be available who would agree to refinance. Now the rates offered by lenders will be quite higher than normal. Waiting for another 6 months would allow you to build up your credit also.

Colin

wablola · Posted: Mon Jan 15, 2007 12:46 pm Post subject:

Hello Debbie,

I agree with Colin to wait and build up your credit which would provide you more options on different refinance programs from other lenders. Doing so will hopefully provide you the best rate possible in your current situation.

How long is the Chapter 13 plan set for? Three or five years?

Guest

Yes, presently rates will be more than what you can get if you wait for some more time. Build up your credit again and then apply for refinance. That is the best advice I can give. But also no harm in searching the market to know what rates other lenders are willing to offer presently to get an estimate of where you stand right now. Let me know what response you get from lenders.

Loan Advisor

sara · Posted: Mon Jan 15, 2007 10:00 pm Post subject: RE: refinance during chapter 13

Hi Debbie,

Welcome to the forums.

You can refinance while in Chapter 13 and prior to getting the discharge because chapter 13 involves a payment plan for 3-5 years from the date of filing. In fact, it is possible to get refinance loan by the end of 12 months from the date of filing bankruptcy.

Conforming conventional loans offered by the Fannie Mae may require you to wait for 2 years since the bankruptcy discharge in order to apply.

However, the FHA allows borrowers to apply for FHA insured refinance loans provided the lender confirms that the borrower has been paying for Chapter 13 for 1 complete year (all payments made in time). Along with this criterion, you should also get the approval from the court regarding a mortgage transaction.

Thanks,

Sara

Guest

We, my husband and I, have been in Chapter 13 for 1 year now. Payments have been made on time. Our Mortgage comes up for refinancing in October this year. Should I go ahead and start looking for a company that could help us refinance when that time comes? When do I contact our Trustee to let them know that we will need to refinance in October? Needless to say our credit score was poor when we filed 13 last year. I am really scared as to what might happen since the economy is so bad and you have to have a perfect credit score to get loans these days.

smithsussane · Posted: Sun Jan 04, 2009 11:43 pm Post subject:

Hi Connie!

Welcome to forums!

As far as I know, if you refinance your mortgage before the 36th month of bankruptcy, then you will be held responsible for paying the unsecured debt that you filed for. If you refinance after the 36th month you will not be held responsible for that back debt. You can have the lender refinance all of your current debt. As your bankruptcy is only a year old, may be you will be responsible for unsecured debts. However, I would suggest you to speak to the lenders and check if they will be ready to refinance the loan.

Feel free to ask if you have further queries.

Sussane

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Who will refinance my home while I am in Chapter 13 BK?