Posted on: 18th Mar, 2009 07:43 pm
I am in the process of refinancing my mortgage with cash out. I live in Texas. At the beginning / talking stage of the refinancing process, I told the broker that I am currently in a chapter 13 payment plan since July 2007, have never missed a payment or never been late. He did not see the chapter 13 to be a problem. All the necessary documents have been signed and submitted for approval.
Regarding my current mortgage, I refinanced in 2003 and have never been late or missed a payment until last month, February payment was made March 6. The broker received a report, I think from my mortgage company, that showed no late payments. However, the late payment has surfaced and the broker says it will probably stop the process and my refinancing will be denied. After 5 1/2 years of perfect payment history, one late payment is doing me in.
Another broker has told me that since I have a Fannie Mae mortgage, that the chapter 13 has to be paid off before refinancing can be applied for. I forgot to tell him that the mortgage was not included in the chapter 13 in 2007-whether or not this would make any difference.
I am also a veteran and have my VA eligibility. Would there be any benefit going with a VA loan?
Thanks,
Phil from Texas
Regarding my current mortgage, I refinanced in 2003 and have never been late or missed a payment until last month, February payment was made March 6. The broker received a report, I think from my mortgage company, that showed no late payments. However, the late payment has surfaced and the broker says it will probably stop the process and my refinancing will be denied. After 5 1/2 years of perfect payment history, one late payment is doing me in.
Another broker has told me that since I have a Fannie Mae mortgage, that the chapter 13 has to be paid off before refinancing can be applied for. I forgot to tell him that the mortgage was not included in the chapter 13 in 2007-whether or not this would make any difference.
I am also a veteran and have my VA eligibility. Would there be any benefit going with a VA loan?
Thanks,
Phil from Texas
Welcome philcollins,
If you have defaulted your payments, there are chances that the lender will not refinance the loan. As far as Chapter 13 is concerned, you will have to wait for a year after the discharge of bankruptcy to get a FHA loan and 2 years after the discharge to get a conventional loan. As far as VA loan is concerned, you will have to wait for 2 years from the date of discharge to get a VA loan.
If you have defaulted your payments, there are chances that the lender will not refinance the loan. As far as Chapter 13 is concerned, you will have to wait for a year after the discharge of bankruptcy to get a FHA loan and 2 years after the discharge to get a conventional loan. As far as VA loan is concerned, you will have to wait for 2 years from the date of discharge to get a VA loan.