I was wondering if anyone has been successful in refinancing or cash out refinance on their home after their ch 7 was closed and did not reaffirm their mortgage and would also know some lenders or brokers. I have equity on my home and haven't missed a payment. Thanks
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I did just successfully complete refinancing our home. The mortgage was included in Chapter 7 as was a line of credit. The BK was finalized in August 2011. I did not reaffirm the loans. I continued to maintain payments on the 1st mortgage and stay in the house which had negative equity in 2012.
In 2013 I settled the line of credit which was with a second bank for 8% of the amount and the lien on the 2nd mortgage was released.
In November 2016 my FICO 8 score was 677, but my FICO 2 score was 724. The home was appraised at $430K and the amount owed was 315K.
I applied online with GuaranteedRate and received a locked rate of 3.625%
The process took 33 days from application to signing of final documents on 12-3-16
Because the mortgage loan was canceled in the BK, and I did not reaffirm, there were no records of the payments in my FICO report. It was necessary to do a credit supplement with a credit confirmation agency which I did by having a conference call with the bank and credit agency. This was arrange for by GuaranteedRate.
I did not take cash out during the refinance.
I believe the refi was successful because I waited until there was 20%+ equity, I had not missed any payments to the bank, and my income to debt ratio was less than 30%.
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