Negotiate New Mortgage Interest Rate while in Chp 13

[wannaknowleo]

I have an FHA Mortgage that is included in my 13 and I wanted to know if it were possible to negotiate with my lender, CitiMortgage, to permantely reduce my interest rate to 4% for the remainder of my loan, which is 20 years.

My other option would be asking the Trustee/Judge for permission to do an FHA Streamline Refinance to take advantage of the extremely low interest rates. Mine is currently 7% and I would save a ton (post-bk of course) in interest over time. I don't know if I can do this while in an active 13, but I do know its not based on my credit to do the FHA Streamline Refinance to benefit from the low interest rates.

I don't play on leaving my house in the near future even though I have thought about walking away due to being upside down on the mortgage more than 30%. I have kids and don't plan to uproot them or move anywhere in the near future. Which option makes more sense?

1. Ask the bank to reduce the current interest rate I pay; from 7% to 4%?

2. Refinance the FHA mortage to take advantage of the low rates?

[HHM]

Probably won't have too much luck simply negotiating and citiMortgage will want some sort of authorization to even speak to you, so probably just go with the FHA streamline refi...note, you must be in your chapter 13 for at least 1 year and have made all payments. (realize, no one makes money off of negotiating the interest rate, but they make money off of a refi).