Refinancing home under Ch 13

[Cindy]

This may have been answered before, I am new and am desperate to find someone who can refinance our home. Is that even a possibility under a Chapter 13 filing???? Anyone who can answer and direct me I would appreciate it .

Thank you so much, this forum is wonderful!!!!!

[13inOR]

We just did this through directlender, but I think there are a few out there to try. Especially if you have a good payment history for your 13, you can even get a pretty decent rate. Of course you have to have trustee approval to do so.

[Cindy]

Re: Refinancing when in Ch13

Thanks so much, do you have the link to thier site, I am oh so lost and scared to death :-( we own our own business and money is slow coming in so I need to do this so I dont lose my home. Thank you so much

[13inOR]

Just be careful to go through trustee approval first. Have you paid for 36 months yet, or are you in a 100% plan? There are several things to consider at this point. It can certainly be done, we just last week refinanced and paid off early but it isnt for everyone so just make sure it fits your situation first.

[Jman30]

I attempted to refinance my home last month but pulled out at the last minute. I am only 15 months into a 48 month plan. My current rate on my home is 10.35% and I found a lender willing to do an FHA loan at 5.5%, including escrow. We got approval from the Trusteee....but there was confusion. The Trustee thought it was a full Chapter 13 payoff, but we just wanted to refinance the mortgage (not take out cash, just get a loan for the amount we still owe on the home). It would only have changed by payment by $180.00 once the escrow was included in it.

After meeting with my lawyer, he advised me to let sleeping dogs lie. He said he has never tried to just refinance a home while in a Chapter 13 - he has only see the Trustee approve a refinance that involved a full payout.

Additionally, I am only paying 11% in the Chapter 13, which is very low, so my lawyer advised me to just keep doing like I am doing, since we have perfect payments. Basically, he said don't draw any attention to yourself wtih the Trustee until the 36th month and then do a Chap 13 Buyout.

ADDITIONALLY, most lenders will charge you HUGE closing fees because of your credit situation. Sometimes, the Trustee will not approve if the fees are too big.

So 13inOR is right...there are MANY factors to consider.

[Cindy]

Hi jMan,

We want to just re fi do not want cash, now you mention FHA loan, where can you find an FHA lender that will work with you when in Bankruptcy??? If I can actualy get one pmt to Trustee(last months) and our house pmt we would be good as thre is money coming in at the business, we own our own medical business, so billings will be going out, but I need help now.

[Jman30]

Hi Cindy -

I don't know what state you are from, but I went through [url]

They did a great job and the reason why I didn't refi had nothing to do with them. It was on advice of my lawyer.

[Cindy]

Re: FHA Re Fi

Thank you Adam, \

I will call you tomorrow 3/10/06....I appreciate this information and I hope this can work....Oh thank you so much for answering.

[Cindy]

Thank you jMan,

This is all new to us and of course I get scared when it comes to my house, and now hopeing we won;t get dismissed.

[Cindy]

RE Fi house in Ch 13

Hi Cindy -

I don't know what state you are from, but I went through
They did a great job and the reason why I didn't refi had nothing to do with them. It was on advice of my lawyer.

We live in Texas, not sure if laws differ from State to State as this is new, but I would assume they do. I wanted to mention we have already paid our Lawyer, so does that mean anything more he may have to do such as approve a re fi will cost extra, and not included in original BK???

[Jman30]

We live in Texas, not sure if laws differ from State to State as this is new, but I would assume they do. I wanted to mention we have already paid our Lawyer, so does that mean anything more he may have to do such as approve a re fi will cost extra, and not included in original BK???

That depends. From reading these various posts on this forum, some lawyers will charge you to file the application to refinance, some won't. Mine does not charge me extra - the retainer and fee I paid him up front covered the life of the Chapter 13.
Some posters on here have lawyers who fee only covered the actual filing process and once the BK is confirmed, anything else costs extra.

Check with your lawyer.

[Cindy]

Re Fi in Ch 13

That depends. From reading these various posts on this forum, some lawyers will charge you to file the application to refinance, some won't. Mine does not charge me extra - the retainer and fee I paid him up front covered the life of the Chapter 13.
Some posters on here have lawyers who fee only covered the actual filing process and once the BK is confirmed, anything else costs extra.

Check with your lawyer.

Well seems our attorney is one that charges for anything after the filing of the BK