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Refinance to make payments affordable

Posted on: 03rd Aug, 2012 12:38 am
hi there… got discharged chap. 7 in 4/11. i really need to refinance my mortgage in order to combine both 1st mortgage and 2nd mortgage to make payment affordable for me. my credit has improved. when is a good time to apply for refinance?
Welcome Gabby,

As you had filed Chapter 7 and got a discharge from it just a year back, you won't be able to refinance the mortgage so soon. In order to take out a conventional mortgage refinance, you will be liable for waiting 3-4 years.
Posted on: 03rd Aug, 2012 01:06 am
Gaby,

If you're in a hardship, you might qualify for a loan modification. The credit score does not hurt you when being reviewed for one. How much is owed on the loans and what is the current market value of your home?

Juan
Posted on: 15th Aug, 2012 10:35 am
Hey Juan... Welcome back to forums... It's really great to have you back in the forums after such a long time!! :)
Posted on: 15th Aug, 2012 10:32 pm
you have to wait at least 3 years since the chapter 7 bankruptcy in order to get approved for mortgage modification.
Posted on: 16th Aug, 2012 03:15 am
james, i appreciate the warm welcome brother, thanks.

sky, that is actually inaccurate. bankruptcy has absolutely no affect in applying for a loan modification. biggest reason is that the homeonwner is not getting a new loan. fact is that one is requesting the current owner of the mortgage note to chagen the existing terms of the note agreement based on some financial hardship. filing bankruptcy can be used to solidify the hardship to the lender.
Posted on: 16th Aug, 2012 10:24 am
I guess I didn't log in when responding. Not trying to call you out and mean no disrespect to you with my response sky.

Lender negotiations is my specialty and I do it on a daily basis.
Posted on: 16th Aug, 2012 10:28 am
You're correct, Juan. One needs to wait for 3-4 years after chapter 7 in order to qualify for a new mortgage. As far as loan modification is concerned, there is no such waiting period. However, it is true that modifying the loan after bankruptcy will be completely the discretion of the lender.
Posted on: 17th Aug, 2012 12:22 am
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