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who to approach for a refi?

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    who to approach for a refi?

    My husband and I are having a really difficult time getting our house refinanced...we have an awful ARM with Litton Loan and it just had it's 1st adjustment 9/1, and it's tied to the 6 mo LIBOR rate..so, due to adjust again 3/1..the 1st rate adjustment was 3% raising our payment $300 a month.

    Our bankruptcy will be 2 yrs discharged 2/16/08. The past 12 monthly payments are being paid, but, we're a "rolling 30", we're still running 30 days behind...husband went on short term disability this past spring/summer for awhile...had some health issues arise..they are under control now and he's back to work full time. We are still paying off about $1500 out-of-pocket medical expenses and a small IRS bill of about $650, not to mention about $1,000 truck repair bills for husband... so there isn't alot of extra money floating around. So, we haven't been able to come up with a full mortgage payment to bring it current. Am getting NO help from Litton (surprise, surprise)...the department that evaluates our situation is only accessible via fax or mail...NO phone calls...can't get anyone to return my calls from there. We reaffirmed the mortgage with Litton and they still aren't reporting the mortgage to the credit bureau...I've been with current employer for 7+ yrs, and husband has been with same company for 30+ yrs, my 401k/Profit Sharing is valued about about $10k, and his is about $110k, so on paper it looks pretty good, just can't get the "rolling 30" cleared up yet...

    Anyways, we've had 1 lender tell us that mid-Dec they could refi, we even did an appraisal back in Aug/Sep after being told "everything was set to go", but then they got the Verification of Mortgage from Litton that showed the "rolling 30"...The lending fees on this are outrageous...BUT we need to get out of this ARM ASAP...we can easily afford the house pymt where it was around 7.5%, but not this 10.5%...

    Our credit scores are in the high 500's/low 600's...haven't checked in awhile, so not sure what they are now...we have several small credit cards that we use, and have been making on-time payments to rebuild some credit, and we have a car loan that we've been current on for almost 2 yrs as well...

    Any suggestions? Where should we start? After reading about mortgage brokers I don't know if we should use that other lender or not...

    #2
    How long has your loan been a rolling 30 day?
    What is your house worth compared to what you owe?
    I think it is going to be very tough to get it refinanced because there are late payments after a BK.
    Last edited by MTG_BANKER_OH; 11-27-2007, 12:00 PM.
    Nick Kusan

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      #3
      Yep, those late payments are hurting you right now......

      After coming out of bk, lenders want to see at least 2-3 years of good payment history before they will even talk to you.

      I was 3 years out and got a 6% interest rate on a refi...... got out of a 12% on a land contract....

      The good payment record after bankruptcy is very important.....
      Minny

      "It's amazing the paths that our feet sometimes follow in life".

      My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

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