Good morning everyone...
I'm in a chapter 13 - 100% payback plan. My mortgage is part of the bankruptcy but I pay it outside of the plan. The mortage is an ARM that adjusts yearly (I've had this mortgage for the past 7 years). The yearly adjusted rate has always been so low that we never considered refinancing to a locked in rate. Just out of curiosity I contacted the bank to ask about the Making House affordable program. All we're looking for is getting a fixed rate..no principal reduction or anything. I was told no because of the bankruptcy. We're also underwater thanks to the economic times. Our house value has decreased $80,000 since we purchased the house and the mortgage is underwater. We bought in with 20% down so it hurts even more thinking about it. So our situation is that we couldn't have even refinanced before we filed because we were already underwater. Our payment is low compared to rental homes in the area so I don't have any plan of leaving (at least for the next year - our rate just adjused again to 3%).
Because of the chapter 13 do we have no options for getting a locked in rate??? I know 1 option is to walk away from the house and surrender it (the trustee says this we can do)...but it's not what I want to do (That could change if the values keep falling - I hear prices are going up but I don't see that in my part of Washington state, they're still dropiing)
Does anyone have any experience with this situation?? Just something I'm wondering about.
Thanks.
I'm in a chapter 13 - 100% payback plan. My mortgage is part of the bankruptcy but I pay it outside of the plan. The mortage is an ARM that adjusts yearly (I've had this mortgage for the past 7 years). The yearly adjusted rate has always been so low that we never considered refinancing to a locked in rate. Just out of curiosity I contacted the bank to ask about the Making House affordable program. All we're looking for is getting a fixed rate..no principal reduction or anything. I was told no because of the bankruptcy. We're also underwater thanks to the economic times. Our house value has decreased $80,000 since we purchased the house and the mortgage is underwater. We bought in with 20% down so it hurts even more thinking about it. So our situation is that we couldn't have even refinanced before we filed because we were already underwater. Our payment is low compared to rental homes in the area so I don't have any plan of leaving (at least for the next year - our rate just adjused again to 3%).
Because of the chapter 13 do we have no options for getting a locked in rate??? I know 1 option is to walk away from the house and surrender it (the trustee says this we can do)...but it's not what I want to do (That could change if the values keep falling - I hear prices are going up but I don't see that in my part of Washington state, they're still dropiing)
Does anyone have any experience with this situation?? Just something I'm wondering about.
Thanks.
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