Re-Financing Home in13 or 7

[brokeNconfused]

Does anyone have advice for refi a home in chapter 13? How much time needs to go by? any recommended lenders?

How about in a chapter 7? anyone have luck doing this after just 2-3 years? how about interest rates?

[rrockinggramma]

FHA will refinance if you have been in your chapter 13 at least 1 year and have made ALL payments to the trustee on time.

After chapter 7, you must wait 2 years after discharge.

[Flamingo]

BrokenConfused - do a search on here - so much has been discussed on here regarding refinancing in a Chapter 13. Our attorney gave us the name of a broker he used for other clients which worked well for us so I suggest you start with asking your attorney for a broker reference. You will probably have to go with FHA.

[jgarton244]

We refinanced our home after 18 months into our BK 13 plan. I searhed internet for banks offering FHA loans. Settled on Bank of America, who was also one of our creditors in plan for cc. Told them at initial phone call we were in a BK 13 plan. We filled out all applications and sent in needed paperwork. Once all that was completed, we had our attorney write a letter to trustee for approval to incur new debt. The letter of approval was one of the requirements to get final loan approval. We only refinanced our current debt owed at time of refi, plus closing costs. We did this as we had a ballon paymeent due in year 4 of our plan. It was approved, and we went from a 7% to 6.25% rate, including PMI insurance. It took about 10 weeks from start to finish.

[brokeNconfused]

that helps.. BOA had no problems even knowing they were in your 13 plan?

[workinghard]

Has anyone heard of a "mortgage retention program"? I saw an ad and emailed for more information about this. Supposedly there is some program where they negotiate with the lender to reduce the principal and rate and you stay in your house. I told him i'm already in a ch 13 and says this is what they do best. I figure it can't hurt to talk to the dude. Of course, i'm skeptical and not going to hand out any of my info until I find out more details and investigate if this is legit or some scam.

[Flamingo]

Has anyone heard of a "mortgage retention program"? I saw an ad and emailed for more information about this. Supposedly there is some program where they negotiate with the lender to reduce the principal and rate and you stay in your house. I told him i'm already in a ch 13 and says this is what they do best. I figure it can't hurt to talk to the dude. Of course, i'm skeptical and not going to hand out any of my info until I find out more details and investigate if this is legit or some scam.

Yes - what occurs there is that the value of the home at the time is refinanced to a lower rate and a second mortgage is done for the balance of the original loan but is not payable at that time and held on the side for payments to start at a future determined date. You do not get out of what you owe on the house but it gives you a chance to keep it refinancing at a lower amount for that time at a lower rate. Investigate thoroughly....Lots of people think they are being forgiven what they owe on the house and can refinance for what the house is worth and the difference just disappears...not the case

[workinghard]

I spoke to the guy, in ways it sounds legit BUT they said it cost $3000 - he can do it for $2400....and I told him how can I come up witht hat when all my disposable income going to the 13. His reply to see if I can skip my mortgage payment month or two - ummm RED FLAG - that don't sound right to me at all!. So, I just told him I will talk to my attorney. But I haven't called as I'm still waiting on a call back from last week when I questioned plan modification.

Yes - what occurs there is that the value of the home at the time is refinanced to a lower rate and a second mortgage is done for the balance of the original loan but is not payable at that time and held on the side for payments to start at a future determined date. You do not get out of what you owe on the house but it gives you a chance to keep it refinancing at a lower amount for that time at a lower rate. Investigate thoroughly....Lots of people think they are being forgiven what they owe on the house and can refinance for what the house is worth and the difference just disappears...not the case