Posted on: 10th Apr, 2010 08:38 pm
this is a complex situation here. my husband and i were discharged from a chapter 7 bankruptcy in june '08,and our attorney advised us not to reaffirm the mortgage. we've never been late on a payment, but we no longer receive statements, and the loan doesn't show up on our credit reports.
our adjustable rate, interest-only mortgage payment will rise from 6.625% which we pay now, to the prime index rate plus 2.75% in nov. '11. our mortgage was originally with indymac, then indymac federal, then one west. (one west said right now they are not doing any refinancing) we owe about what the house is worth, and this includes an interest-only home equity loan at the current prime rate. to further complicate our situation, my husband and i are self-employed and own our own business.
we love our home and wonder whether we should just reaffirm the interest-only mortgage (and brace for a payment hike in '11), or whether we should attempt to re-finance in the next year or so, maybe with additional money down.
our adjustable rate, interest-only mortgage payment will rise from 6.625% which we pay now, to the prime index rate plus 2.75% in nov. '11. our mortgage was originally with indymac, then indymac federal, then one west. (one west said right now they are not doing any refinancing) we owe about what the house is worth, and this includes an interest-only home equity loan at the current prime rate. to further complicate our situation, my husband and i are self-employed and own our own business.
we love our home and wonder whether we should just reaffirm the interest-only mortgage (and brace for a payment hike in '11), or whether we should attempt to re-finance in the next year or so, maybe with additional money down.
Hi Adonis,
Thanks for your quick reply. Assuming we decide to re-open the bankruptcy case and reaffirm, would you advise trying to refinance (with another lender, since One West is not doing any refinancing), or would we be best just paying the interest hike for another year or two, when the bankruptcy would be a few years behind us?
Thanks for your quick reply. Assuming we decide to re-open the bankruptcy case and reaffirm, would you advise trying to refinance (with another lender, since One West is not doing any refinancing), or would we be best just paying the interest hike for another year or two, when the bankruptcy would be a few years behind us?
Hi kris!
Welcome back to forums!
If your present lender is not ready to refinance the loan, then you can contact other lender for the same. It is always a better option to refinance the loan after 2-3 years have passed since you filed for bankruptcy.
Sussane
Welcome back to forums!
If your present lender is not ready to refinance the loan, then you can contact other lender for the same. It is always a better option to refinance the loan after 2-3 years have passed since you filed for bankruptcy.
Sussane