I have first and second adjustable rate mortgages that are set to readjust in a couple months. Should I try to refinance before filing Ch 7? Credit scores are already low, so would I get a decent fixed rate going forward or should I just take my chances on the new rate being the same or lower than what I had? I'd like to keep the house. Wasn't there some sort of bill in process that would give judges the ability to force a lender to give you a reasonable rate?
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Just bumping this to see if anyone has any thoughts! -
If you are re-affirming the mortgage(s) you may want to look into getting that rate fixed. Those adjustments are what kill most people and put them into Bankruptcy anyhow. While this first adjustment will probably be almost nothing (LIBOR is pretty much flat lately), future years could cause you issues.
The rates usually (contractually) never go below your initial rate.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
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Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.Comment
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You could see if you qualify for the loan modification process however you need to do that before filing.May 31st, 2007: Petition Filed by my lawyer
July 2nd, 2007: 341 Meeting Held
September 4th, 2007: Discharged and Closed.Comment
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I'm in the same situation. I wasn't able to refinance before filing because my debt ratio was too high. We filed and did not reaffirm our two mortgages. We are able to stay in the house as long as we stay current. However, the good thing is, if we do fall behind and are forced to foreclose, we will not take the second hit against our credit. We are protected under the bankruptcy.Chapter 7
Petition Filed: 3/24/09
341 Meeting: 5/15/09
DISCHARGED!!!! 7/20/09Comment
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that bill as FALLEN APART and there is no indication it's going to happen at this point in time. It would have only been for a 13 anyway.
Now with the arm....in a Ch7 you have to work out whatever you can with the mortgage companies. If you want to keep the house, regardless of what you do before filing, you have to work something out with them directly once the case is filed.
Whatever agreement you can reach with the mortgage lenders is what you can reach.
There may be statutes that come into play for your state, but you can discuss that with your attorney.I do not provide legal advice. All I do here is give my two cents as an opinion and at least share some of the facts that I know. Attorneys can provide legal advice, so go ask them or hire one.Comment
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