Creditor's approval?

[Pumpkin729]

When you ask your trustee for an early payoff does it have to be approved by the creditor's first?

Which is better to do:

Refinance or home equity loan?

[Flamingo]

Steps to buying out of a Chapter 13: (1) contact your attorney to see if you will be able to first buy out; (2) if you can buy out, your attorney will instruct you what needs to be done (i.e., find a broker for refinancing, obtain an appraisal, etc.); (3) If you are approved for refinancing (a good broker will push you toward a FHA mortgage at a fixed rate), you will need to provide the paperwork to your attorney for review; the attorney will then submit to the Trustee for approval and a Motion will be filed by your attorney and the Trustee to Petition the Court for you to buy out of your Plan; (4) there is a cost for that Motion which can be put on your settlement sheet at settlement; (5) This process takes time; it took us 6 months from first contacting a broker to settlement.

You will more than likely be required to refinance your home in order to buy out; that is, if you have enough equity to actually buy out. Your attorney will advise you appropriately. Best of luck to you!