Chapter13 and get a refinance??Please help!

[brokeNconfused]

I have seached the forums and seems old informationfor this question.
I have filed Chapter13 and will be discharged in july after 3 years of payments and tears. I have a few questions if anyone can or is willing to help would be great.
#1 i have tired to refinance this home as i am in an adjustable rate that starts in June with at least a 2% hike. When i began to talk with brokers i was told my credit has not gone up since i filed chapter 13. With this i was told there was no way for me to get a refincance loan. They all said to wait at least a year from disccharge to allow credit to go up. Well not sure i can wait tht long. I was unnder the impression that with a 13 it would continue to go up over the 3 years. i have made all payments on time to trustee,, this house and my car.

#2 i have spoke to my attorney about this and they do not have any brokers they work with to provide advice or help with loans

so #3. is it possible to still refinance while under a chap 13? Does anyone out there have a broker in washington that can help?

[justbroke]

#1 i have tired to refinance this home as i am in an adjustable rate that starts in June with at least a 2% hike. When i began to talk with brokers i was told my credit has not gone up since i filed chapter 13. With this i was told there was no way for me to get a refincance loan. They all said to wait at least a year from disccharge to allow credit to go up. Well not sure i can wait tht long. I was unnder the impression that with a 13 it would continue to go up over the 3 years. i have made all payments on time to trustee,, this house and my car.

You are not guaranteed the ability to refinance, as most lenders have tightened up credit! Generally speaking, there are "some" lenders -- FHA backed -- that may lend you money after you've been in a Chapter 13 for at least a year. However, they still do look at your credit.

#2 i have spoke to my attorney about this and they do not have any brokers they work with to provide advice or help with loans

You need to shop around. The only loans you'd probably qualify for -- if your credit is at least over 600 -- is FHA or FDA-backed loans.

so #3. is it possible to still refinance while under a chap 13? Does anyone out there have a broker in washington that can help?

Possible, but not 100% guaranteed.

You are probably better off looking at modifications under HAMP. If your scores aren't over 620 and you're just about to get out of your Chapter 13, then your credit is probably not good or you had really really really bad credit before filing.

The first thing you need to do is clean up your credit report and make sure that it is accurate.

[brokeNconfused]

Thanks for the advice. If i would have known this i would have filed for a 7 instead of 13. i was under the impression that credit worked back up once you filed a 13. as far as my credit, it was good before i filed. Ill see what is out there for me.

[brokeNconfused]

i forgot to ask.. can i get a HAMP loan with being current in house payments? is there a link you could add forthe information?

[Flamingo]

Thanks for the advice. If i would have known this i would have filed for a 7 instead of 13. i was under the impression that credit worked back up once you filed a 13. as far as my credit, it was good before i filed. Ill see what is out there for me.

We refinanced in a Chapter 13 and settled 4 years into our 5 year plan and paid off our Plan along with much needed major house repairs (main reason for the refinancing). Our scores at that time were around 645/650. We qualified for a FHA mortgage but also with those mortgages go a required 5 years of PMI payments which can significantly up your monthly mortgage payment (thank goodness they get removed this April). We only refinanced for enough to pay off the 13 and for the repairs still leaving us quite a bit of equity...and we needed trustee permission for all this and trustee review.

It doesn't matter what Chapter you file as to refinancing - if you don't have the necessary requirements for any loan you will not get the loan. Chapter 13 usually gives one a few years of payments into the Plan and otherwise to show a mortgagor that you are again somewhat creditworthy - one doesn't have that in a Chapter 7. Your situation is "situational" as to how you personally stand right now. It probably would have been the same if you filed a Chapter 7. Time is your friend after filing either Chapter. Your best bet is to find a FHA broker and shop around. Realize you will be still considered a risk and will have to deal with PMI issues and possible other high fees or interest. There is no guarantee...you will also need Trustee permission so check with your attorney before you make any further moves.

[justbroke]

I would fist review your credit report at all three bureaus and make sure that they are accurate! As stated, your credit still does need to be "average" or better to get credit, especially a mortgage these days. With all the mortgage issues today, the lenders are very very tight.

You can ask for HAMP if your have an adjustable rate mortgage (ARM), it's about to adjust, or other issues. The deal would be to get into a 30-year fixed and make sure that you are under 31% of your gross income for housing payments.