Ch 13 refinance to pay debt.. Is it possible anymore?

[shannon503]

I am currently in a Ch 13. Part of my plan is that I am required to refinance my home and take a portion of the equity proceeds to pay off my creditors. I was advised by my atty that I need to refinance my property now to get this done and also advised that I am required to do this by my 50 mo. I am at mo. 47. (A previous atty had told me I had another year).

Needless to say, I was pretty upset about this. I have been on the phone most of the day trying to find a lender that will be able to do this refinance for me. I was told that FHA won't approve these types of loans because of Fannie Mae and Freddie Mac's current situation.

I had read previously that FHA would approve CH 13 loans given certain criteria (payments on time, 620 credit score, etc) but am wondering if that is just old news and it's simply not possible to get a FHA loan to refinance while currently in a CH 13.

It was also suggested that I try for a portfolio loan but so far I've been unsuccessful in finding anyone willing to do this either.

I worked pretty hard to try to save my home and I would hate to have to sell it now. It was the whole point of going 13.

If anyone has any insight on this, I'd really appreciate hearing from you.

Thanks

Shannon

[justbroke]

You need to shop around. There are some that will give you refinance loans. You may need to find a broker. I'm not saying this would be easy to do. You are in a difficult place, and this is one reason I surrendered my investment property in my Chapter 13 due to the requirement to refinance in month 48 and pay the unsecured creditors 100%.

I know that hindsight is 20/20, but any attorney who told their client to do a "balloon" payment in month 48 by refinancing while in a Chapter 13... must have been on crack. It can jeopardize your discharge, and that's what you need more than anything.

Wish I had more for you.