Refinance in Chap 13

[Jinks221]

Hello,
I'm looking for a mortgage company that works with Chapter 13. Mortgage is 172,000, bk is around 30 to payoff. Value is anywhere from 176 to 250,000. Anyone gone through a refiance that actually worked. Only one more year in bk put need to payoff. Credit right around the necessary mark. Have tried but mortgage guy just couldn't make happen in a timely manner and value was going down quickly. Please only recommend those that have actually worked!

Thanks.

[bkdone]

We refinanced to get out of BK in 2006 (old BK rules). You have to let the Trustee know that you are planning to do this, as they get to approve or deny the plan first. This is because technically, you'll be asking to take on more debt (a higher loan amount) and they'll want to see a GFE, detailing all the costs. We went with America's Servicing Company (ASC) which is under Wells Fargo, and I have no complaints. Countrywide was trying to charge us astronomical fees and the Trustee rejected their offer to refi...Trustee made us shop around for a better offer. That was a hassle, but in the end, a wise decision because it saved us alot of money. My best advice is to go to a mortgage broker. You fill out one application and they shop around for you, then present you with the various offers/rates/fees from the different mortgage companies. This will save you from having to fill out numerous application and having several hard pulls on your already fagile credit score.

Once the Trustee approved our refinance plan, we went ahead with the loan and paid off our BK with the equity in our house. Its was actually pretty easy once the Trustee gave us the green light. Make sure your lawyer is aware and helps you if necessary. I think we paid an extra $300 (paid from the proceeds at closing) for him to do whatever documents he needed to do... Its been awhile but I have all the forms still...I can pull them out for you.

[Pandora]

Are you trying to pay off your CH. 13 by refinancing and cashing out? Bigger question I'd ask myself if I were in your situation of trying to refi ... is what reason do you need to refi? Is it because you want a lower interest rate / fixed interest rate / get out of an IO or ARM loan? Or...is it because you want to cash out equity to purchase something and/or pay off your Ch. 13 early?

If its to cash out equity you believe you have - and use the monies for something.... think long term here. You're almost at the end of a 5 year plan and will have that money coming to you as payments will stop, however refinancing may result in a higher mortgage payment not to mention closing costs, etc. Are you really saving anything at that point vs. just leaving it as is and finish out your Ch. 13 plan, keeping your mortgage payment as is?

From what you wrote - I'm going to assume you plan on cashing out equity since you stated "Have tried but mortgage guy just couldn't make happen in a timely manner and value was going down quickly"

[justbroke]

Mortgage is 172,000, bk is around 30 to payoff. Value is anywhere from 176 to 250,000.

The first question to answer is... was your plan confirmed after October 15, 2005? If so, then what is the total of all the creditors on Schedule F and Schedule E?

(I'm trying to make sure we understand whether you are in a BAPCPA confirmed plan. A post-BAPCPA plan requires a payment of 100% of the allowed unsecured claims -- on Schedule E and F -- to be paid. It's not just about paying the "plan base".)

As others have shown, you can get refinancing so long as you have paid perfectly and on time. You can get an FHA loan as well. You will need Trustee permission.

[gregg]

we are also looking at how to handle buying a car. I have a decent income but have the 13 open for another 2 years. My wife is not on the 13 but has minimal income around $600 month. We need to buy a mini van, looking to buy something reliable in the 2008 range. Would it be best to pull equity out of the house, and refinance to get rid of the bankruptcy or should we look to a high interest rate loan (18%+) and finish out the payment schedule? We have been trying to get a car loan but keep getting turned away or that slimey predatory dealer who just doesn't seem to have our best interests in mind. Anyone know a good option for auto lending or refi at a good rate? . We currently don't have a car payment but desperately need another car for my wife to work.

[Jinks221]

Pay off BK

We are trying to refi because our plan in 2006 when home values were high, was done with a balloon payment on the end ($20,000). This was done in order to keep our payments within our reach.
Is it possible to sell a car that is in the plan? The prinicipal owed in the plan is low and I am thinking we could sell for a higher amount and pay to plan?