Mortgage Refinance

[Duncan]

In planning out my mid-2009 BK, I'm also trying to see if a mortgage refinance is doable. Currently, we are 5 yrs into a 30, loan is in my name only. My BK will be happening because of the high CC debt we have, also in my name only. My wife's credit score is mid 700 range. If I were to refinance my current mortgage under my wife's name only (swap her for me), would that create any redflags or problems 4-5 months from now when I file? My score has already plunged dramatically due to the high debt to income and the fact that I haven't been paying since Jan/Feb. Also lending guidelines are tighter too. My banker said no for me, but what if we swap? Thanks

[Duncan]

Can anyone offer any experience, knowledge, or opinions on this question? Thanks

[lrprn]

If I were to refinance my current mortgage under my wife's name only (swap her for me), would that create any redflags or problems 4-5 months from now when I file?

Given the limited amount of information you've provided, since it looks like you plan to file alone, tinkering with the financial ownership around major assets within a year of filing, especially when an insider family member is involved, can be risky.

Are both of your names on the home's deed? Are both of your names on the current mortgage?

To be on the safe side, it's best to discuss this with an experienced bk lawyer to see how this would fly in your local court.

Now if you two are filing a joint bk, then that's another story. Which is it? Are you filing alone or are you two filing jointly?

[Duncan]

Thanks for the reply

I have not consulted with a BK attorney as of yet

My ideal "plan" is to file solely, as the CC debt is in my name only

No she is not on the deed or the current mortgage

I guess I cannot put off consulting with a BK attorney anymore

[Herbert]

Well,

Make sure that the drop in interest rates is enough to make a refinance mortgage loan worthwhile. A refinance mortgage loan generally means paying off your original mortgage by signing a new loan. Your refinance mortgage loan acts like your typical mortgage loan. That means that you pay most of the same costs you paid to get your original mortgage.