Refinance after discharge

Urgent answer needed. My huband was discharged in CH 7 on June 1 of this year. On July 13 he grant deeded me the house (was in his name as single man before we were married) so that I could re-fi for us and get a better rate. Is this legal? Is there a limit to how much money we can re-fi for?

Annie,

As a loan consultant, let me educate you as to what your options are. First off, with a bankruptcy, only non-conforming lenders will be able to help you. That means if you were to walk into a Bank of America or a Wells Fargo, they would only decline you. However, there are several non-conforming lenders that can refinance you a day out of bankruptcy.

Now your husband being on the title is not a problem, because in a refinance you can be added on title or your husband can be removed and you can be the only one on title. Now if your husband is the only wage earner, normally he would be the only one who would qualify for a loan. However, if you do work, you can take the loan out with your name on it, and since you have not had the bankruptcy, you wont have many problmes as long as your income and credit history is qualifying. Now if you dont make eneough money, that can be worked around using a stated income program, where you can still qualify without any income verification.

Now if you dont have a job, you can be qualified for a loan under a No Income No Asset verification program. I have recently done one of these, and they close rather quickly because there is little to no paperwork to verify.

As far as cash out limitations, as long as your home has equity, I dont forsee a problem. Any competent mortgae company should be able to help you out.

Glad to help,
Ali Razavi
ali@dcsmortgage.com