Posted on: 24th Mar, 2008 10:49 pm
hi, i have a question about my mortgage, my wife and i file for bk chapter 7 on dec, 2006 and was discharge on march 2007. we kept the house, and after the discharge my mortgage company stop reporting to the credit, we tried to refinance our house to lower the payment since we have an adjustable rate , but nobody help us refinance since the the mortgage is not on our credit report anymore. what can we do to refinance? or how long after the discharge we can refinance?, is there any help for people with chapter 7 to refinance their mortgage and the new bank to report the payments to the credit bureau?. can we apply for a goverment loan like hud or fha to refinance an lower the payment?, what to do?.please help!!. we live in illinois
Hi Cassandra,
Welcome to forums.
Have you been paying for the mortgage while in bankruptcy? I don't understand why then the mortgage payments have not been reported. You can ask the lender about it. Since it's just 1 year since you have received a discharge, therefore lenders are not willing to offer you the loan. Generally it takes around 3-4 years to get a conventional loan and 2 years to get an FHA insured loan for a refinance after Ch7 bankruptcy.
First of all, talk to the lender regarding the mortgage payments and try to find out why it hasn't been reported. Let me know why they have done so. Perhaps I may be able suggest a way out.
Thanks
Welcome to forums.
Have you been paying for the mortgage while in bankruptcy? I don't understand why then the mortgage payments have not been reported. You can ask the lender about it. Since it's just 1 year since you have received a discharge, therefore lenders are not willing to offer you the loan. Generally it takes around 3-4 years to get a conventional loan and 2 years to get an FHA insured loan for a refinance after Ch7 bankruptcy.
First of all, talk to the lender regarding the mortgage payments and try to find out why it hasn't been reported. Let me know why they have done so. Perhaps I may be able suggest a way out.
Thanks
You will need to wait until December 2008 to refi into a conforming loan..2 years post filing.....and March of 2009 2 years post discharge for an FHA loan.
Hi Cassandra,
Welcome to the forum.
If you want to refinance the mortgage now, then you will not be offered best rates and terms as you are discharge from BK for one year. You should wait at least two years and try to improve your credit after you are discharged from Bankruptcy so that you can be able get better rates and term.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
If you want to refinance the mortgage now, then you will not be offered best rates and terms as you are discharge from BK for one year. You should wait at least two years and try to improve your credit after you are discharged from Bankruptcy so that you can be able get better rates and term.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Again Cassandra
Welcome to this forum.
Here are the guidelines for your situation: I hope they help.
FULL DOC CASH-OUT REFI
Cash out refinances are for owner occupied residence is limited to 95%
LTV of the appraised value (85% with a non-occupant co-borrower).
Property must be owned for at least 1 year. If less than 1 year you must use
the lesser of the appraised value plus allowable closing cost or the original
sales price of the property plus allowable new closing cost multiplied by
95%. Properties with mortgage lates in the past 12 months are limited to
85% Cash Out.
RATE AND TERM REFI WITH APPRAISAL
Can be used to go from a Conventional or Non-Conforming loan to an FHA
loan. Full Doc Required. May be used to lower the 1st mortgage or to
combine a 1st and 2nd mortgage up to 97% LTV. Closing costs may be
added to the loan amount as long as you do not exceed LTV. Borrowers
must credit qualify. Property must be owned for 12 months to use a new
appraisal. No more than $500 cash back is allowed.
A BK Chapter 7 will not disqualify the borrower if at least 2 years have
passed since the BK was discharged and the borrower has re-established
good credit (or has chosen not to incur new obligations) and has
demonstrated an ability to manage financial affairs. An elapsed period
of less than two years (but not less than 12 months) may be acceptable if
the borrower can show that the BK was caused by extenuating
circumstances beyond his or her control and has since exhibited an
ability to manage financial affairs and the borrower's current situation is
such that the events leading to the BK are not likely to recur.
CHAPTER 13
On a Chapter 13 BK, a borrower will qualify if there has been at least
one year of re-payment plan with a perfect pay history. The borrower
must also receive court approval to enter into the mortgage transaction.
Welcome to this forum.
Here are the guidelines for your situation: I hope they help.
FULL DOC CASH-OUT REFI
Cash out refinances are for owner occupied residence is limited to 95%
LTV of the appraised value (85% with a non-occupant co-borrower).
Property must be owned for at least 1 year. If less than 1 year you must use
the lesser of the appraised value plus allowable closing cost or the original
sales price of the property plus allowable new closing cost multiplied by
95%. Properties with mortgage lates in the past 12 months are limited to
85% Cash Out.
RATE AND TERM REFI WITH APPRAISAL
Can be used to go from a Conventional or Non-Conforming loan to an FHA
loan. Full Doc Required. May be used to lower the 1st mortgage or to
combine a 1st and 2nd mortgage up to 97% LTV. Closing costs may be
added to the loan amount as long as you do not exceed LTV. Borrowers
must credit qualify. Property must be owned for 12 months to use a new
appraisal. No more than $500 cash back is allowed.
A BK Chapter 7 will not disqualify the borrower if at least 2 years have
passed since the BK was discharged and the borrower has re-established
good credit (or has chosen not to incur new obligations) and has
demonstrated an ability to manage financial affairs. An elapsed period
of less than two years (but not less than 12 months) may be acceptable if
the borrower can show that the BK was caused by extenuating
circumstances beyond his or her control and has since exhibited an
ability to manage financial affairs and the borrower's current situation is
such that the events leading to the BK are not likely to recur.
CHAPTER 13
On a Chapter 13 BK, a borrower will qualify if there has been at least
one year of re-payment plan with a perfect pay history. The borrower
must also receive court approval to enter into the mortgage transaction.
What is the new waiting period after discharge to refinance and get off a baloon contract
I have been informed by a Michigan lender that it is 3 years.
is it 2 or 3 years
2 Yrs for FHA
My father filed BK more than two years ago and basically he is been working with the lender to modify the loan, we are in the second of three trial period payments, the question is? If he had two loans 80/20 and he has been discharged in both, can I add my name on the deed my the payments for a year and Refinance under my name removing my dad from the loan? What happen with the second trust?
Can we refinance only the first and get rid off the second one, because was discharged under my dad's name?
Thanks
Can we refinance only the first and get rid off the second one, because was discharged under my dad's name?
Thanks
hi achucha,
you will have to speak to the lender in this regard. it would be completely the lenders discretion whether or not he would let you refinance the loan in your name. also, refinancing the first loan will not help you in getting rid of the second mortgage. the lien will still remain on the property.
thanks
you will have to speak to the lender in this regard. it would be completely the lenders discretion whether or not he would let you refinance the loan in your name. also, refinancing the first loan will not help you in getting rid of the second mortgage. the lien will still remain on the property.
thanks