Chap 13 Refinance

[radshaw911]

I have 2 yrs left on my 13. I would like to refinance. I know it has it's pros and cons, but I can't keep living like this...having Chap 13 constantly hanging over my head. I would only need @ 20,000 to pay off the 13, and have plenty of equity in my home. My concerns are these: How willing is the Trustee to actually allow me to refinance? Should I go to just anyone, or are there people who specialize in refinancing homeowners currently under Chapter 13? And, b/c I don't know anyone else in my situation, should I do it or not?? I just need some guidance, and can't seem to find anyone who knows what they are talking about!! I'm hoping someone here can help me.

[SinkingFast]

Are you Old Law or New Law? Old Law, typically, you could refi out at the 36 month mark. New Law, we obviously haven't gotten there yet.

Several people here have refi'd their homes and paid off their plans.

You can check the National Data Center and guesstimate your payment for an idea of how much money above your current loan you're gonna need.

https://www.13datacenter.com/index.asp

Maybe hit a Mortgage Calculator on line and see what kind of payment you might be looking at. Be sure it's something you can live with.

Personally, I'd shop Brokers first and see if you have someone Local that can locate Lender(s) for you. There have been several posts here about NOT using sites like Lending Tree.com and such. People have had better results using local Brokers.

JMan30 did a refi. Here's a link to a thread where JMan posted a couple of answers. Maybe look thru more of JMan's older posts for more info.

http://www.bankruptcyforum.com/showthread.php?t=9815

You have to get permission and the Official Pay-Off from the Trustee. You do the refi with the Bank like normal. Like when you originally bought your house. The Trustee gets paid in full. Then you have to wait for the Final Audit of your Plan. The Trustee does a Final Audit of all monies coming in and going out to be sure every penny is accounted for. Then you get Discharged.

[radshaw911]

chap 13 refi

Thank god!! Someone I can finally talk to....I am old law. I know I have to get permission etc....I have actually tried refinancing twice previosly, but my payoff was just too high. It is finally managable, and I am past my 36 months. Who to Refi through is a big concern, so thanks for the advice....Countrywide has my current mortgage, and silly me thought they could help...well, it is their policy NOT to refi chap 13. I actually did read quite a few of JMan30's posts...I will have to go through and read them more carefully.
Another question.....someone may or may not have any experience with this situation......I have student loans.....about $35k. They are, of course, not being paid on right now b/c of the 13. I know that they can not be discharged. I was told by my lawyer that, whatever my payoff amount is, after everyone is given their money, whatever is leftover will be given to my student loans. After being discharged then, I will continue to be responsible for my loans. I think this is all kind of crappy, b/c after I refi to get out of 13 I will have a buttload of student loans to pay off. Anyone else experienced this? How did you handle it? Is faking one's death ever a good idea? Just kidding......
I am so glad to be a part of this Forum. It is nice to know there are people out there with the same problems and concerns I have, and that I don't have to go through this alone anymore. Thanks for the links...I'm sure you'll be hearing more from me now that I know where I can go!!!!!!

[bkdone]

Chapter 13 Refi

I just did a refi to get out of Chapter 13. Closed the end of July, discharged 9-6-06, case closed 11-7-06. I must say it was so worth it and the feeling of release that comes with it is indescribable. I would be happy to give you whatever info (help) I can. Send me a direct message, simply because this topic was discussed in depth recently. Look back at the threads around July and August. Several posters were going thru this process at the same time. Good Luck!!

[arkienurse]

[QUOTE=radshaw911;72469]Another question.....someone may or may not have any experience with this situation......I have student loans.....about $35k. They are, of course, not being paid on right now b/c of the 13. /QUOTE]


Are they not being paid because of your amount of debt? I am old law, and my student loan payment is paid by the trustee every month. It will survive past the bk, but I don't think I will owe very much by then, since they are making the same payment I was on before my bk.

[aa06a47]

I have 2 yrs left on my 13. I would like to refinance. I know it has it's pros and cons, but I can't keep living like this...having Chap 13 constantly hanging over my head. I would only need @ 20,000 to pay off the 13, and have plenty of equity in my home. My concerns are these: How willing is the Trustee to actually allow me to refinance? Should I go to just anyone, or are there people who specialize in refinancing homeowners currently under Chapter 13? And, b/c I don't know anyone else in my situation, should I do it or not?? I just need some guidance, and can't seem to find anyone who knows what they are talking about!! I'm hoping someone here can help me.

One thing I would do is go to one of the online mortgage lending companies you see advertised all over the place. www.lendingtree.com is one I used in the past and it was so easy (but I wasn't bk at the time). In the application, you spell out your credit history and can state what you want the money for. You should be able to get several lenders to give you offers and my past experience (I used them to refinance twice), the rates are very competative.

It doesn't cost anything to put this "feeler" out. If you actually see something you like, then you can proceed with asking the trustee permission.

Only thing, just be prepared for your phone to ring non-stop for about 2 weeks after doing this.

[CJKraft]

I tried Lending Tree when I refinanced last year and had a horrible experience. It seemed like a great idea at first when the lenders were competing for my business. But the one with the best rate pulled a "bait & switch" just before the loan was about to close - he promised me one rate and then told me it was going to be higher since they discovered that my condo was non warranted or something like that. Then I tried one of the other lenders that was calling me and they ended up doing something very similar.

Finally a friend referred me to a broker that she recommended. He got me a great interest rate, he was very knowledgeable about the bankruptcy process, and above all - he was honest.

My best advice is to find a trustworthy broker (not a lender); and make sure that they have had experience with bankruptcies.

[Jman30]

Radshaw, I HIGHLY recommend you going through a lender who has experience in refinancing out of BK. I went through a couple of lenders before I found one who specialized in the process. I was refinanced out after 20 months. I went from a 10.5% APR to a 7.5% and I got back $10K.

I scanned through the post sort of fast....let me know if you have any more questions??