refinance possible?

[danohio2831]

hello
it has been a long time since my life was over, i thought. bankruptcy has been awesome. my new life is great.

now to the point,
fact 1
we had a house in bankruptcy that we did not reafirm the payments on , then six months after the discharge we let the house go into forclosure
fact 2
my wifes excelent credit, and even filling bankruptcy did not drop her scores below 690 and we found someone to finance us on another house
fact 3
so we do have a forclosure on our hands, but we have had a house payment since december of 2006 and never late , and my wife got a credit card 2 weeks after discharge!!!!!! and has been rebuilding her credit ever since.
fact 3 we are at around 10 % interest and was wondering since mortgage rates are dropping if it might be a good time to look for one. ( it is a ballon type, i new and and am happy i done it and would do it all over again, so please do not lecture me on a bad decision, cause i would do it all over again, thanks!!)

questions
1. since we have a forclousure, how will that affect refinancing our home. and it has positive equity, maybe only 5,000 ( but that is better than 70,000 with the second mortgage on the other)
2. i hear to wait two years after the forclosure, is that when you were discharged or when the actual forclosure happened?

nick this is dan, i dont know if you remember me, but you got us the loan and maybe if i can call to talk to you about refinancing?

thanks all

[HHM]

You never know until you ask.

But your current loan is just barely going on 1 year, your credit has not improved that significantly since then, etc. You may first want to make sure you don't have a prepayment penalty in the current loan. Second, unless you are able to do a refi with another balloon (not advisable ) your payment would likely increase regardless of any reduction in interest rate. Finally, with that little existing equity, refi's can be challenging.

A refi is not impossible, but you have many obstacles such that I doubt you would be able to improve your situation in a meaningful way. You might be better off to stick it out another year, and then get a deal that will make your situation significantly better.

[Flamingo]

questions
1. since we have a forclousure, how will that affect refinancing our home. and it has positive equity, maybe only 5,000 ( but that is better than 70,000 with the second mortgage on the other)
2. i hear to wait two years after the forclosure, is that when you were discharged or when the actual forclosure happened?

Mortgage lenders are being very picky and careful right now as to who they extend mortgages all due to the subprime fiasco. While I am not saying you may not get a mortgage, the one you may qualify for will be really up there in interest cause lenders just now are not taking risks. Most banks/lenders now are just taking people with stellar credit. With a foreclosure and bankruptcy on your record, you may have a hard time right now getting approved. You may want to try to wait for a while if that is at all possible until this entire subprime, credit and mortgage situation improves.

[CindyLou]

I might be missing something here, but at 10% interest I don't see how you could go anywhere but better. I would certainly check on a refi and try to get into a better rate if at all possible. It can't hurt to try and all you can be told is no for now and then wait a little longer and try again. So many people told me "NO WAY" and I was just given my approval yesterday on my FHA loan. See my thread under "Lending Tree Results". Good luck and keep us posted.

[Flamingo]

I might be missing something here, but at 10% interest I don't see how you could go anywhere but better. I would certainly check on a refi and try to get into a better rate if at all possible. It can't hurt to try and all you can be told is no for now and then wait a little longer and try again. So many people told me "NO WAY" and I was just given my approval yesterday on my FHA loan. See my thread under "Lending Tree Results". Good luck and keep us posted.

One must also remember that each time you apply to a different lender for a mortgage, you start accumulating inquiries on your credit reports that now stay on for 2 years. Too many inquiries over a short period of time, on top of bankruptcy and other factors on your credit reports, does not go over well with many lenders or creditors. We applied for refinancing to buy out of our Chapter 13 in late 2005 with one lender which generated 2 credit inquiries from that one lender under two different corporate/company names in a 3 day span. We could not get the second inquiry removed even though it was from the same company. I even called them about it and was told since the inquiry was generated from one of their offices in another state, they could not remove the inquiry. We did not go with that lender and reapplied through another. The new lender we accepted sent several inquiries in over a 3 month span of time prior to our settlement so for applying for one refinancing, we generated about 6 or 7 inquiries from two lenders. We were not happy about it and thankfully they will all start coming off gradually next month. If necessary, you should try one or two places and then stop if you get negative results or very high rates.

[MTG_BANKER_OH]

hello
it has been a long time since my life was over, i thought. bankruptcy has been awesome. my new life is great.

now to the point,
fact 1
we had a house in bankruptcy that we did not reafirm the payments on , then six months after the discharge we let the house go into forclosure
fact 2
my wifes excelent credit, and even filling bankruptcy did not drop her scores below 690 and we found someone to finance us on another house
fact 3
so we do have a forclosure on our hands, but we have had a house payment since december of 2006 and never late , and my wife got a credit card 2 weeks after discharge!!!!!! and has been rebuilding her credit ever since.
fact 3 we are at around 10 % interest and was wondering since mortgage rates are dropping if it might be a good time to look for one. ( it is a ballon type, i new and and am happy i done it and would do it all over again, so please do not lecture me on a bad decision, cause i would do it all over again, thanks!!)

questions
1. since we have a forclousure, how will that affect refinancing our home. and it has positive equity, maybe only 5,000 ( but that is better than 70,000 with the second mortgage on the other)
2. i hear to wait two years after the forclosure, is that when you were discharged or when the actual forclosure happened?

nick this is dan, i dont know if you remember me, but you got us the loan and maybe if i can call to talk to you about refinancing?

thanks all

I think you may have to wait until you are 2 years from the filing currenty. That was a tough deal to get done. That lender is Out of Business. I am glad to hear things are going well. FHA technically wants 3 years from the sale of the house, but we get different answers every time we ask them especially if is is in a BK. You might be able to get into FHA when you are 2 years from the discharge. In this market 10% is not bad on a non conforming loan. I do not think you will be able to do anything until you are 2 years out.

[ronydecosta]

Hi, I certainly agree with you. Your advice is really very helpful for us.
Thanks a lot!