Re-financing after BK?

[LSUTiger32]

Is there a definite 2 year waiting period to do an FHA loan (even a re-fi) after a Chapter 7?

Just wondering.....I am keeping my house but my rate is 7%. I would love to lower it if the rates are still lower than that in the future.

[AngelinaCatHub]

Is there a definite 2 year waiting period to do an FHA loan (even a re-fi) after a Chapter 7?

Just wondering.....I am keeping my house but my rate is 7%. I would love to lower it if the rates are still lower than that in the future.

I am not sure of the FHA rules, but, if you did not reaffirm the house, and things went really bad in the future, you could walk away from it without penalty. If you re-fi, that is a new loan outside of the bk protection. You would then be liable for it. Consider this into your plans. 'Hub

[LSUTiger32]

Good point. I am not sure if they are going to force me to re-affirm or not. As of this point I have not heard anything. Whatever I have to do to keep it though, so if they force me I will and then look to re-fi as soon as possible.

[mom2three09]

We're in the same boat... our interest rate is 7.25% (FHA) and we are with BofA. Planned on reaffirming but BofA doesn't reaffirm and we changed our minds anyway so I guess it doesn't matter. But... we're still current and would probably stay a few more years until we could sell the place if we could get a lower rate. We're not under water, but yet we cannot see ourselves living here more then 2 more yrs. Pretty sure we would have to wait 2 yrs before we could refi tho and I'm guessing a mod is out of the question too

[want2save]

Question along the lines of this thread: If this party were to walk away from the house a year or so after the BK, not having reaffirmed, would a foreclosure show on the credit report or would the loans show IIB? Would there be any income tax due for mortgage relief if a line of credit secured by a 2nd Deed of Trust was recorded, but also IIB?

[hereforinfo]

Question along the lines of this thread: If this party were to walk away from the house a year or so after the BK, not having reaffirmed, would a foreclosure show on the credit report or would the loans show IIB? Would there be any income tax due for mortgage relief if a line of credit secured by a 2nd Deed of Trust was recorded, but also IIB?

Not sure if the foreclosure would show on the credit report, I think other posters have said in some cases it did not. However, the foreclosure is public record and would have to be disclosed when applying for a new mortgage. The date of foreclosure would be when the title changes back to the lender (at the end of the actual foreclosure process).

I don't think it would be taxable, but that's something you'd want to confirm with a CPA.