Refinance while still paying off?

[plp]

Hi all!

I am 2.5 years into my 5 year plan and would like to refinance my house. I have been doing 100% payback and have never been late with a payment. I have good equity in my home and would like to pay off the rest of the chapter 13, get an emergency fund started, put away for my kids' college and do a bit with the house if there is anything left over. I have tried with one company and I was told after about 3 weeks of back and forth that they would not refinance until the bankruptcy was discharged. Is this true? Are there mortgage companies out there that will help with this type of situation? I'm not expecting any miracles with the interest rate, but I am not looking for a quick fix or ARM loan. Things like that tend to bite people in the rear down the line. I know what I can afford. I want another 30 year fixed or something very similar. I appreciate any help with this.

[Ortgeist]

yes, there is one I know of

I posted this in another thread, but you can get a fixed rate for 30years in the area of 6% interest rate. It's a HUD loan. To qualify, you must have made 12 months worht of timely payments to your trustee, not have any 30 day lates on your mortgage for 12 straight months, and not have any utilites in collections for 12 straight months.

We filed in Sept, thus we cannot qualify for this until next August. I spoke with a mortgage broker who specializes in clients who are nearing or currently in bankruptcy.

[plp]

Who would I contact to find out about this? Would I contact HUD directly? Also, do mortgage companies as a whole have departments to deal with this? I'm at the start now and I really don't know what questions to ask. lol

[Jfields47]

What state are you in ? I have contacts of people that can walk you through this process, which isn't an easy one. I have extensive experience with these types of loans. A common problem is which lender you apply at, because lenders don't have to follow Hud guidelines exactly how they are laid out. The basics are 12 months paid on time to the trustee, no collections or late pays since the bk, and lastly some lenders want your mortgage to be current , but not all lenders require this. Any questions I would be happy to give some insight .

Jon

[plp]

Thanks for your advice. I have since found a company and we are in the process of refinancing. A couple of questions though concerning the process. First off, my loan officer is suggesting we just refi the house, bk and 2nd mortgage first because it is going to be at a higher rate. Then, for the extra I want to take care of what I stated above, he is suggesting we can get a lower rate once the bk is refinanced, probably the month after. Is this the norm and is it a good idea? The second thing is he has told me I will need $400 for the appraisal report, the title report and my credit report(though he has already checked my credit). He stated that this will be the only out of pocket expense for me. Does this sound above board? I can pull the money together, but I'm suspicious this sounds like a scam. It might be because I have no experience with this type of thing, but I'd like second opinions.

TIA!

C

[kiddles]

I'd want ALOT more info before going for it - if he closes 2 loans, he gets 2 commissions, so it might be in his best interest, but not yours.