Resubordination and doing a lien strip

[mavric]

Need some insight of what could happen. Some background..

Doing a HARP refi on my 1st . All approved If I had just the 1st it would be done.
3rd year of a ch 13 [ yes u can do a HARP in ch13]

Need 2nd to resubordinate that we are striping at the end of ch 13. Suntrust HELC
They are getting paid in the ch13

I just have a bad feeling about this , and it will kill the HARP refi.

Anybody had to deal with this?


Sure hope this work's.

[dmc-2008]

This is confusing to me, so I am sorry I can't answer. I don't know what resubordination is. I have a question though. I am in a 13 and am stripping a 2nd and 3rd. I pay my mort outside of bk. If you do a refi and your payment goes down wouldn't that DMI have to go to trustee anyway, and another question, how can you get a good rate while in a bk? Thanks

[LadyInTheRed]

mavric, I have wondered about that, but don't know the answer because my first is either still underwater or doesn't have enough equity to refi yet and my current mortgage payment isn't a large enough percentage of my income to qualify for HARP. Regardless of the answer you receive here, please keep us updated on how things go.

dmc-2008, when you have a 2nd mortgage and you refinance only the 1st, the new lender will require it be in 1st position. For that to happen the lender on the 2nd must agree to subordinate to the new loan. Without such an agreement, the original 1st will be paid off in the refi, and the original 2nd will become the first, making the new loan the 2nd. In a Chap 13 a lien strip does not actually occur until discharge. So, the 2nd lien still exists and must be dealt with in the event of a refi or sale during the Chap 13.

Yes, if you refi during a Chap 13 and your mortgage payment goes down, then the trustee will probably insist the plan payment increase. When making long term financial decisions like a mortgage refi, you have to look beyond your bankruptcy. The rate available to somebody in a Chap 13 will probably not be the best rate available, but if very well could be better than the rate on the existing loan, especially if you qualify for a program like HARP. Also, somebody with an adjustable rate mortgage, may be willing to pay a slightly higher interest rate now,to lock in fixed rate for the life of the loan rather than risk later rate increases, which is pretty much inevitable at this point.

[dmc-2008]

Thank you lady!!!

[mavric]

Little update... Got a e-mail from my LO ,saying everthing still looks good. Suntrust has 10 more day's to appove or not .

Just thinking if ST was going to turn it down ,they would have first thing. Hoping this is the last hoop to jump thru.

We started this HARP refi OCT 15 All fingers crossed

[mavric]

Update again...... We are still waiting on Suntrust to do there thing. LO said ST asked for more paperwork. and more ,and more

This is getting old. The HARP refi is done ,just need ST to resubordinate IT can't be this hard,

[mavric]

Well Suntrust came thru , took there sweet time about it But it's done.

Now we just have to put the refi deal all together. Started this back in Oct 15 2014.

Payment will stay about the same ,But going from 30 yr [22 yr's left] to 15 yr , 6.75 to 4.1

So yes you can do a HARP rifi when in a CH 13. IT JUST TAKES A LONG TIME, AND LOT'S OF HOOP'S TO JUMP THRU.

[LadyInTheRed]

Congratulations, mavric. That's a great result!

[spidge]

Good job mavric. Congrats.

[dmc-2008]

Those are great improvements. I think that's great!