Refinance while in a 13 plan?

[imoverit]

Is it possible to refinance while in a Chapter 13 payment plan? Example if you had a balloon payment due on your home while you were in the plan?

[lrprn]

It's possible but very unlikely, especially given the current horrible state of the home lending market. Ask your lawyer if he/she knows of lenders who might consider a refinance, but don't get your hopes up.

If you can't refinance, your lawyer can amend your 13 plan since an ARM balloon is usually a large (and permanent) increase on your expense side. Talk to him/her about this possibility now because a plan amendment can take some time to get confirmed.

[justbroke]

FHA has programs for Chapter 13 folks. You'll have to have squeaky clean payment history and probably some equity. It's possible, but as has been posted already, it's also an interesting market out there.

[Flamingo]

Is it possible to refinance while in a Chapter 13 payment plan? Example if you had a balloon payment due on your home while you were in the plan?

Refinancing is possible in a Chapter 13; however, in order to do so, you will have to review the situation with your attorney as you will need Trustee approval to do so. As the other posters have stated, anyone refinancing now with bad credit, BK on their records or in BK will more than likely be turned down for a mortgage. Even folks with excellent credit are having major problems. Also, refinancing during a Chapter 13 takes several months so the best thing for you to do is to discuss the situation with your attorney if you absolutely have to consider refinancing at this time.