refi payoff bankruptcy early

[free4life]

Is it possible to refinance your home and payoff bankruptcy early in Missouri.
(Paid 26 months into 60 month plan)? If so where can you find a lender that want take advantage?

[Credit Hater]

Is it possible to refinance your home and payoff bankruptcy early in Missouri.
(Paid 26 months into 60 month plan)? If so where can you find a lender that want take advantage?

I've read about early payoffs, but I believe you have to be in a 100% payback plan for it to work. Someone please chime in if I'm wrong.

[SinkingFast]

Several posters here have refi'd their home and paid off their Ch 13 plan early.

Generally speaking, you have to wait until you've paid into the plan 36 months, but there are people who've done it sooner.

13inOr was one of the first to talk about it since I've been here. Recently JMan and M900 have paid off early. And Drednm is working on it, maybe even in the process as well.

I imagine you have to get Trustee approval first. I do know the Trustee has to figure the pay-off needed. You'd do a closing on the loan just like when you purchase a house. The Trustee takes their portion and distributes funds to the Creditors. Then the Trustee has to a Final Audit of how much was paid in and who got paid what. Then you'll be Discharged and Closed.

If you used an attny to file your BK, you could ask your attny how it all works.

[Jman30]

Credit Hater, I can help you with any questions you have. Basically, you can apply to do an early payoff anytime you want. You have get a Trustee Credit Recommendation that allows you to incur new debt for the purpose of buying out the Chapter 13. And before you can do that, you need to show that can actually refinance. Usually, you need to get a Good Faith Estimate from the lender that shows you have a reasonable chance of pulling the refinance off.

There are lenders out there who specialize in refinancing out of Bankrupty. It is a tricky thing, there are alot of little steps that need to be done. Make sure you really research and find a lender that has provable experience in this. Ask for references of other clients.

I can help with any other questions on this topic. Please let me know!

[bkdone]

I too just refinanced to get out of Ch. 13. Check out previous threads on the subject... JMan anm I both detailed the ups and downs of refinancing.

My best advice is to SHOP AROUND! I used a local mortgage company (broker) and I filled out one application. The broker's job is to shop your file around and try to find the best deal. I applied with one of the "big hitter" mortgage lenders, only to find out that they were trying to really screw me! After finding the broker, I had 5 separate loan approvals to choose from! This will also help because the Trustee will not approve the refinance if the terms are not in your favor...or at least reasonable.

We are all here to help. Feel free to ask me anything as well... All the details are still fresn, since I just was discharged on 9-6-06!!!

[Jman30]

My refinance was actually through a mail solicitation. Normally, I just throw those sort of things out. But for some reason, I opened that one. I was really down that day about how things were going and I figured "what the hell?" and I called the guy.

6 weeks later I was out of my BK.

[californiamama]

do you know who your lender is? i want to try and see if i can refi out. how high of a loan to value were you guys allowed?

[ch13buyout]

Is it possible to refinance your home and payoff bankruptcy early in Missouri.
(Paid 26 months into 60 month plan)? If so where can you find a lender that want take advantage?

Yes its possible. I have done many Chapter 13 Buyouts for people in your situation. I work in a bankruptcy law firm as thier mortgage refi person.

But while you are searching, please make sure you stay current with your trustee payments & your mortgage payments if they are outside of your Chapter 13 plan. Your ontime trustee payments work to your advantage in establishing your credit-worthiness.

And remember, your goal in doing a refi is to put yourself in a better position. Which means getting a bankruptcy discharge, not a dismissal.

Alex Socia, J.D., M.A.

[Jman30]

do you know who your lender is? i want to try and see if i can refi out. how high of a loan to value were you guys allowed?

I refi'd with Allied Home Mortgage. They have offices all over he country. I can't vouch for every office, but the one I worked with in Columbus OH was great.

I got a $200,000 on a house appraised at 208,000.