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Chapter 13 Buyouts a thing of the past??

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    #1

    Chapter 13 Buyouts a thing of the past??

    We filed our 13 in Oct 05 (old law). We have about 8K left to pay.

    We currently have a 30 year mortgage @6%. We have about 50-60K in equity in our home (only owe 101K).

    I know others have been able to do a Chapter 13 Buyout, where they pay off their BK for a discharge, and refinance. I have enquired with a couple of banks (CU and Local Bank) about doing this and re-fiing for 15-20 years.

    Both bank & CU stated you need to be 2 years beyond your 13 discharge before qualifying.

    Could it be that these are new Underwriting requirements for Fannie & Freddy???

    K
    You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing
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    #2
    this could be the new reality of the credit crisis, equity loans are almost a thing of the past, and you need perfect credit to get any kind of loan, so maybe CH 13 people need not apply? I don't know if it's a Fannie Freddy thing, other than their toxic loans are now killing everyone's chances of getting refinanced or equity loans these days now that the market has tanked... :-(
    Filed CH 13 September 17, 2007
    Plan Modified July 8, 2009 from $1100/month to $400/month due to change in income, finally discharged in July of 2013!

    Comment

      #3
      You know what REALLY bites is that Fannie/Freddie underwriting requirements are that you can't get approved for a mortgage for 2 years after discharge in a 13. (We had a 5 year plan, so that means 7 years) Our BK will be off our records then anyhow. So essentially, they'll give you a mortgage SOONER if you file a 7.

      UGH!!!!!!!!!!

      Well, I need to stop my pity party now. We're lucky. We aren't upside down on our home, we have a 6.0% rate, which is not bad, really......

      Just venting a lil bit!

      Our current lender Wells Fargo, said they would do a FHA Streamline re-fi, but for 30 years. I'm not starting all over again with 30 years. No thanks! I figured it out that if we could pay an extra 175/mo on our mortgage, we'll pay it off in about 15 years anyhow..........
      You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing

      Comment

        #4
        Yeah, lots of times I wish I could be in the CH 7 club too! Sounds like you're in pretty good shape if you still have equity in this market and can even pay extra to get house paid off sooner. That's great! Too bad the timing is such that you can't use it to your advantage to get out of CH 13 earlier tho. I have a pretty high interest rate on my home loan and was hoping the Obama plan would help there, but on the website it said if your credit score wasn't 650 or better to forget it, which in an active CH 13 I know it's worse, blah!
        Filed CH 13 September 17, 2007
        Plan Modified July 8, 2009 from $1100/month to $400/month due to change in income, finally discharged in July of 2013!

        Comment

          #5
          We're lucky. We bought just before home values went sky high.
          I dont' know if we really have quite that much equity, but we definitely have some.
          I wish I could take advantage of todays rates, and get out sooner. Get our discharge and get on with life

          K
          You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing

          Comment

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