Refinance options

[KSL]

I would like to refinance my first and second mortgage. Does anyone know where I might be able to get a refinance loan one year after discharge?

My current mortgage refuses until two years after discharge.

Has anyone been successful with refinancing with any certain company after filing for chapter 7? Which lender did you use?

[justbroke]

For Chapter 7, you need to wait 2 years after discharge, for an FHA backed loan. If your bankruptcy was a special hardship case, you could plead with FHA (through underwriting) to make an exception. They actually do exceptions and it's not just some myth! However, your story needs to be, well, heartbreaking.

Are you underwater? Did you reaffirm?

[KSL]

I'm not underwater, and I did reaffirm with my second mortgage, but the first didn't require it. My payments are just too high. I got mixed up in the time when they were giving away second mortgages too easy. That was a mistake, cause now I can't afford it, essentially two house payments. I want to refinance them both together to get one low payment.

[justbroke]

I wish you had never reaffirmed the second, but that's not answering your question. I was just curious. I think you will need to let your discharge season some more, before refinancing. Unless, of course, you have extenuating circumstances.

[KSL]

I wish you had never reaffirmed the second, but that's not answering your question. I was just curious. I think you will need to let your discharge season some more, before refinancing. Unless, of course, you have extenuating circumstances.

Why does it make a difference in reaffirming the second? My attorney advised me of it, and they also required it. My first mortgage did not require it.

[justbroke]

My payments are just too high... [t]hat was a mistake, cause now I can't afford it, essentially two house payments.

That statement is exactly why you should never reaffirm. I hate to see good people caught up in a reaffirmation issue after the fact. It's too late to correct that reaffirmation issue, but you may be able to refinance in another year or so. You just need to reestablish credit and keep your credit profile spotless. This means ABSOLUTELY NO 30-DAY(+) lates on your mortgages!

If you ever have the time, please read the thread Why reaffirming a mortgage is a very, very bad idea. written by one of our resident forum member attorneys. I don't like really beating on this topic, since you've already done the reaffirmation.

[KSL]

That statement is exactly why you should never reaffirm. I hate to see good people caught up in a reaffirmation issue after the fact. It's too late to correct that reaffirmation issue, but you may be able to refinance in another year or so. You just need to reestablish credit and keep your credit profile spotless. This means ABSOLUTELY NO 30-DAY(+) lates on your mortgages!

If you ever have the time, please read the thread Why reaffirming a mortgage is a very, very bad idea. written by one of our resident forum member attorneys. I don't like really beating on this topic, since you've already done the reaffirmation.

Interesting on the link to that post. I wonder why my attorney told me I had to sign a reaffirmation agreement. He told me that was the only way to keep my home.

My second mortgage did tell me that they could do a modification. What exactly do most mortgage companies do in a modification? Would a modification be a better option for me now?

[justbroke]

My second mortgage did tell me that they could do a modification. What exactly do most mortgage companies do in a modification? Would a modification be a better option for me now?

A modification would work. Generally, they'll lower the interest rate and/or roll arrears back into the loan. You'd need to run the numbers to see what they are offering. You would want a nice "fixed" rate and probably nothing over 5% for 30 years.

I do not know what motivated your attorney to have you sign a reaffirmation.

[KSL]

I do not know what motivated your attorney to have you sign a reaffirmation.

I have no idea either after reading that post. I thought he was good, it all went smooth and no problems whatsoever. Except for now I'm finding out that the reaffirmation wasn't a good idea.

I also found out recently too that in reaffirming my car loan that when the bank applied for funds from any assets they were denied any asset funds due to me signing a reaffirmation agreement on my car loan.

If I do a modification on my mortgage, will the reaffirmation still be in effect?

[justbroke]

Yes, a reaffirmation "excepted" your mortgage from discharge, so a modification is not going to affect it at all.