All of the resources I've tried looking at indicate only basic requirements for filing chapter 13. So, can anyone that meets those requirements file?
Here's my situation:
Currently awaiting a HARP refinance, which if I go through with it will be a huge money saver (super low interest). Of course with HARP, I'm still stuck with the second mortgage.
Another option is the almost-ready FHA short refi program, but I'm dubious that there are enough incentives to get the holder of the second to play ball.
So now I'm also open to the option of doing a Chapter 13, which will strip the lien on the second, and I can worry about the first mortgage later, maybe via a short refi, or just hold on to it.
House Values: house just appraised at $132k, first balance owed is $147k, second balance owed $44k, both conventional loans.
Debts: just the house, a truck I could easily pay off (it's only to keep my credit history), and a credit card that I do pay off every month. The debt-to-income for the combined mortgage payments (including escrow) is only 20%.
Credit: from 780 to 805, reported just recently for my HARP refi. I can stand to take a hit for a while.
Income: I'd be put into the five year plan.
Now my quandary is that I can afford my current payments. I'm not sure of my disposable income; I still have some in my current situation, and that's after 401(k) contributions and rainy day savings. Mostly I just want to save as much money as I possibly can within the legal system (no moral clause in any of my contracts!).
* If I do the HARP, I'll save about $84k (the lower interest, plus dropping down to 15 years) versus doing nothing (and not hurt my credit). That actually increased the payment slightly, but I'm okay with that.
* If I could swing the short refi, even with a high interest rate, I'd be looking to save just over $150k (and if I can get market rate, that becomes almost $195k!).
* Then with chapter 13, I'm not at all sure how to calculate the potential savings, because I don't know how my disposable income will be calculated, and how much of the unsecured, stripped-lien second I'd be paying off over the course of the five years (since I effectively have no other debt).
Any advice here? Thanks!
Here's my situation:
Currently awaiting a HARP refinance, which if I go through with it will be a huge money saver (super low interest). Of course with HARP, I'm still stuck with the second mortgage.
Another option is the almost-ready FHA short refi program, but I'm dubious that there are enough incentives to get the holder of the second to play ball.
So now I'm also open to the option of doing a Chapter 13, which will strip the lien on the second, and I can worry about the first mortgage later, maybe via a short refi, or just hold on to it.
House Values: house just appraised at $132k, first balance owed is $147k, second balance owed $44k, both conventional loans.
Debts: just the house, a truck I could easily pay off (it's only to keep my credit history), and a credit card that I do pay off every month. The debt-to-income for the combined mortgage payments (including escrow) is only 20%.
Credit: from 780 to 805, reported just recently for my HARP refi. I can stand to take a hit for a while.
Income: I'd be put into the five year plan.
Now my quandary is that I can afford my current payments. I'm not sure of my disposable income; I still have some in my current situation, and that's after 401(k) contributions and rainy day savings. Mostly I just want to save as much money as I possibly can within the legal system (no moral clause in any of my contracts!).
* If I do the HARP, I'll save about $84k (the lower interest, plus dropping down to 15 years) versus doing nothing (and not hurt my credit). That actually increased the payment slightly, but I'm okay with that.
* If I could swing the short refi, even with a high interest rate, I'd be looking to save just over $150k (and if I can get market rate, that becomes almost $195k!).
* Then with chapter 13, I'm not at all sure how to calculate the potential savings, because I don't know how my disposable income will be calculated, and how much of the unsecured, stripped-lien second I'd be paying off over the course of the five years (since I effectively have no other debt).
Any advice here? Thanks!
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