Chapter 13 when buyout when?

[tofargone]

I am in Chapter 13 currently. I am now at 100% payback since a few of my creditors did not file.

I figure If I could refinance my house and use the proceeds to pay off the 13 I would have to use about 80% of the equity in my house.

I need 180K for full payoff including paying off the mortgages, the house would be appraised at least at 225k probably more like 235k. If I could get a payment around 1K-1.2K per month I would be saving about $800 per month on all my payments now. Income shouldn't be an issue since we make a little over 80K a year.

I have been in the plan now for only 4 months, I am assuming I will need to be in it for a year. Does anybody know when is the earliest I could refinance and what kind of rate I should expect to see. Prior to filling my scores were hovering around 520 so I'm sure they will still suck.

Thanks

[MTG_BANKER_OH]

I am in Chapter 13 currently. I am now at 100% payback since a few of my creditors did not file.

I figure If I could refinance my house and use the proceeds to pay off the 13 I would have to use about 80% of the equity in my house.

I need 180K for full payoff including paying off the mortgages, the house would be appraised at least at 225k probably more like 235k. If I could get a payment around 1K-1.2K per month I would be saving about $800 per month on all my payments now. Income shouldn't be an issue since we make a little over 80K a year.

I have been in the plan now for only 4 months, I am assuming I will need to be in it for a year. Does anybody know when is the earliest I could refinance and what kind of rate I should expect to see. Prior to filling my scores were hovering around 520 so I'm sure they will still suck.

Thanks

For many loans you are going to need to be in there for 12 months. You may be able to get out of it now, but your credit score may not be good enough to do that currently, and if you can do it currently the rate would be pretty bad probably. Your best chance at getting a good rate would be to go FHA, but that is goinng to be dependent on the housing loan limits for FHA in your area. I think you may have a tough time getting a payment in the 1k range on a loan with taxes and insurance included. Alot of it depends on where you are located. Was the mortgage late? With those scores you may have been able to get out of it back then.

[lrprn]

Toofargone, the biggest issue you are going to have is that with the new bk law, there's no language in it about early buyouts like there was in the old law. Right now many districts are saying they plan to require two full years of payments in a three year plan filed after Oct 2005, and three full years of payments in a five year plan filed after Oct 2005 before they will consider an early buyout.

Since no post-Oct 05 Ch 13 filers have reached the two year mark in a three year plan yet, this is just a big black hole with no precedents set yet. You need to talk with your lawyer to find out if your bk trustee has discussed how early buyouts are going to be handled in your district. I hope for your sake that your district and trustee plan to be more lenient about early Ch 13 buyouts.

[tofargone]

I talked to my lawyer when I filed he thought a buyout would be no problem ( very leinent trustee ). Since I am now in 100% there really is no savings to stay in any longer than I have to.

Mtg-B. I actually am just looking for a payment in the 1K range, the insurance and taxes would add about $500 per month ( Wisconsin property taxes suck ) so a total payment of about $1500 is what I would be looking at, but that would need to be about 6%. Do you know what the FHA limits are in Wisconsin? I think I am fine, but not sure.

Thanks

[MTG_BANKER_OH]

I talked to my lawyer when I filed he thought a buyout would be no problem ( very leinent trustee ). Since I am now in 100% there really is no savings to stay in any longer than I have to.

Mtg-B. I actually am just looking for a payment in the 1K range, the insurance and taxes would add about $500 per month ( Wisconsin property taxes suck ) so a total payment of about $1500 is what I would be looking at, but that would need to be about 6%. Do you know what the FHA limits are in Wisconsin? I think I am fine, but not sure.

Thanks

Try this and put your homes information in there.

https://entp.hud.gov/idapp/html/hicostlook.cfm

The FHA loan has mortgage insurance no matter how much you put down unfortunately unless you do a 15 year loan. But the your total payment with an FHA loan is probably going to be lower then any other options out there though.