Our last payment is next month! What should we expect? Re-fi questions too...help!

[STEPH1079]

We had a 36 month plan which will be completed next month.
All of our payments have been made, none have been late, etc.
I know there is the audit afterwards, but how long for discharge?

We are currently suffering through an ARM and want to re-finance as quickly as possible. We have already talked with a broker. Now we just have one more month to go.
I thought I remembered our lawyer stating we could re-finance right afterwards. I called a month ago and he said we'd have to wait until the discharge - which could be a few months.

I am due with our second child next month. We have discussed our options with our broker - as we will need to add on to our home.
We have a ton of equity in the house, so that won't be a problem.

Question is, do we just sit and wait until we are discharged?

[Flamingo]

To refinance prior to your discharge would still require permission from your Trustee even after you paid your last payment. You are still in Chapter 13 until that discharge is granted. Wait. You should receive your discharge papers within 60-90 days of your last payment. You would still go through the same time period or longer trying to get permission to refinance. You may want to ask your attorney that as soon as you have paid your last payment if it would be OK for you to get the ball rolling ahead of time so you can have all paperwork done and be ready to roll when you have the discharge in hand. Best of luck to you!

[Pumpkin729]

What comes first... the closing or discharge?

[Flamingo]

What comes first... the closing or discharge?

Please reread my last posting. It is pretty clear. You cannot close on your refinance until your 36 month plan is discharged. You may probably be able to get the paperwork rolling (again mentioned in my previous posting) so call your attorney and ask if you can start that so you will have it all ready to go when you are discharged. Unless you have an urgent needs for funds for your house, attempting to jump the gun can get you in trouble. You made it through fine this far; a few more weeks or months will not be that bad.

[STEPH1079]

Thanks for your help!