Refi in Chapter 13?

[jade73]

Has anyone ever refinanced their home in Chapter 13? Not that I want to do this anytime soon but in about a year I want to. Our rates are insane and we are paying almost double what most people are paying for a loan of the same amount. We need mortgage relief

If you've done this, let me know how it went...

[HHM]

I see your payment is very low and you are in a 36 month plan, what was the reason for filing BK 13?

[jade73]

My husband was out of work for a year and we had to file to save our home. That was really the only reason. We tried everything before we filed, even tried a loan mod with our mortgage company that they denied. The only thing they done was raise our interest rate!!

[Flamingo]

This is something you will need to discuss directly with your attorney inasmuch as you are not even confirmed and if you are able to refinance at some point during your Plan, will need trustee approval to do so as the Trustee will want to review all paperwork involved.

Your attorney will need to review your entire financial picture at that time and also note that there may be extra fees involved by your attorony as this is over and above his/her handling of your bankruptcy.

[HHM]

It might be a moot point now, but is the home even worth saving...

Are you in a negative equity position on the home, the home is worth less than what is owed?
You apparently have a crappy mortgage...

At time of filing, you are below median, which means you really cannot afford what you are trying to do.

What exactly is worth saving?

[jade73]

Well the next question is where are we going to go if we let it go into foreclosure? You have to have good credit to rent these days. Another thing is why wouldnt I try to save my home? Why does anyone try to save their home? I have two kids that need a roof over their head and I have to think about that before I worry about having a crappy mortgage.

Still wondering if anyone has refinanced their home during Chap 13 plan? Thanks

[HHM]

You have to have good credit to rent these days.

That is your false assumption. That statement is absolutely NOT true. If property managers did not rent to show with questionable credit, they would have 50% vacancy rates. I have yet to hear of ANYONE have trouble finding a place to rent with a bankruptcy.

You still didn't answer the question of if you are in a negative equity situation.

When it comes to refi, you can at least apply after 1 year in a chapter 13, but unless you have some equity in your home, you are not going to get refi'd.

No offense to you, and granted, I don't know your entire situation, but based on this post, it strikes me as if you used every excuse in the book to make a bad financial decision (i.e. to keep the house). You merely "assumed" you would be able to rent (which is false), and you bring out the "family" excuse.

[jade73]

[jade73]