Refinance vs modification? BK7

[momof3b1g]

We need to figure out the best way to deal with our 1st and 2nd mortgages.

1st owe $85,000 did not reaffirm
2nd owe $13,000 did not reaffirm but balloon payment due Nov 2011
home worth about $130,000

Credit union who holds the 2nd mortgage will not refinance both.

Would like to combine both and lower the payments, as its getting tight paying $1000 per month.

Havent checked credit scores(where can we do that?) but whats the chance of finding a lender to refinance both loans? Would it be easier to qualify for a refi then a new loan on another home?
Or should we stop paying and try to get a loan modification?

[newbie2]

I don't believe you can refinance unless you are 3 years out of bankruptcy. I could be wrong, so check around.

[justbroke]

I would suggest shopping around for a new mortgage. You appear to have some equity there. The rules for an FHA mortgage are typically 3-years after a foreclosure, but it appears that you weren't foreclosed upon! So, FHA allows purchases/refinances when you are 2 years out of a Chapter 7 bankruptcy. That's 2 years from discharge, not filing.

You may want to check your REAL FICO scores at MyFico. Unfortunately, you can only get Equifax and TransUnion FICO scores there. I don't know of any place to get a "REAL" FICO score for Experian these days. If those two scores are above 650, you should be good.

[momof3b1g]

I would suggest shopping around for a new mortgage. You appear to have some equity there. The rules for an FHA mortgage are typically 3-years after a foreclosure, but it appears that you weren't foreclosed upon! So, FHA allows purchases/refinances when you are 2 years out of a Chapter 7 bankruptcy. That's 2 years from discharge, not filing.

You may want to check your REAL FICO scores at MyFico. Unfortunately, you can only get Equifax and TransUnion FICO scores there. I don't know of any place to get a "REAL" FICO score for Experian these days. If those two scores are above 650, you should be good.

TY, where is the best place to start/who to start with in looking for a loan? Its been so long since we have done one.

[momof3b1g]

Well we decided to call Quicken Loan and it seems dh credit score is only 606. So they cannot even help us right now. We have to bring up our credit score. The suggested getting the mortgage co's to report our payments. Which I dont think they will without us reaffirming. Which i dont want to do unless we can be guaranteed we can refinance.

[justbroke]

Unfortunately, it looks like you need to wait. What's wrong with DH's score? Is it utilization or do you have new (post-bankruptcy) lates and collections activity?

[momof3b1g]

Unfortunately, it looks like you need to wait. What's wrong with DH's score? Is it utilization or do you have new (post-bankruptcy) lates and collections activity?

nothing is on dh's report except everything that was included in the bk. nothing new. how fast will the score increase? do we have to have credit for it to go up? or will it go up with more time since bk?

[momof3b1g]

Anyone know who is good to work with, that will refinance those with lower credit scores?

[justbroke]

nothing is on dh's report except everything that was included in the bk. nothing new. how fast will the score increase? do we have to have credit for it to go up? or will it go up with more time since bk?

His score should have improved. There must be something on the report! You were discharged 2 years ago and the scores in a typical bankruptcy, are in the high 600s if you have "re-established" credit and have been paying on time. It seems that 24 months is the "magic" to keep good scores. Utilization is very important.

[momof3b1g]

His score should have improved. There must be something on the report! You were discharged 2 years ago and the scores in a typical bankruptcy, are in the high 600s if you have "re-established" credit and have been paying on time. It seems that 24 months is the "magic" to keep good scores. Utilization is very important.

Seeing we dont know what his score was before bk. We dont know if it has improved or not. Is there a way to see what it was on a certain date? Not sure what you mean that there must be something on the report. All there is are the 2 mortgages and credit cards that were included in the bk. Seeing we did not reaffirm they are not reporting our payments. So his score is lower.

Oh how often do they update the reports? They still show dh's old job and not the current one he has been with for over a year. What else can we do to improve our score if the only thing we have is mortgages which wont report because we did not reaffirm.