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    #1

    Refinancing house?

    I was discharged on 1-13-06 and closed on 2-2-06. I believe I could refi and get about 35000.00 out of my house. I owe a relative 15000.00 and could use the rest of the money to live on. I have started a new career and that is how I ended up filing BK in the first place. Could the trustee find out if I refi? If so, could they take the money? Is there a certain amount of time I should take to do this to make sure the money is safe?
    Thanks!
    Tags: None
    #2
    Did you exempt more than $35K on your Homestead exemption in the BK? How did handling your house work in the BK??

    I guess that's gonna be the question.

    Unless you are talking about going 125% of the value to loan ratio. Which I hope you aren't.

    Cause if you said your house was worth $100K, and used a $30K homestead exemption at the time of BK, the Trustee might wonder how your house suddenly amortized an additional $35K in equity. See where I'm going??

    You'd be best off to wait at least 180 days from close of your BK before you attempt this. The Trustee can claim any windfall for 180 days after the close of a Ch 7 BK. I'd suggest that just to be on the safe side. A year would be even better.
    Filed Ch 7 - 09/06
    Discharged - 12/2006
    Officially Declared No Asset - 03/2007
    Closed - 04/2007

    I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

    Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

    Comment

      #3
      Originally posted by clb123
      I believe I could refi and get about 35000.00 out of my house.
      I wouldn't bet on it. I tried the same thing, only a few months ago. I.E. long before I was even thinking of BK. They turned me down, and I was only shooting for 90% LTV.

      They like to see a nice solid 2 years of job history. Which you (and I) don't have. But it really all depends on what LTV you're looking at. You can probably forget anything greater than 80% or so.

      Comment

        #4
        I have always been self employed so use stated income, that would stay the same. I am friends with lenders and am planning on 95% of value. My attorney used the SEV of my house and it would appraise much higher than that. I am in the real estate business now and know many appraisors and lenders. That will help!

        Comment

          #5
          oops, I had a high score before Bk and it is still pretty good. I was never late on any payments before filing.

          Comment

            #6
            Originally posted by clb123
            I have always been self employed so use stated income, that would stay the same. I am friends with lenders and am planning on 95% of value. My attorney used the SEV of my house and it would appraise much higher than that. I am in the real estate business now and know many appraisors and lenders. That will help!
            I'm not familiar with SEV??!! Not sure what that term means.

            But you said enough in that post to indicate to me that your property was significantly undervalued for your BK. Possibly to get your home in under the equity exemption limit of your State.

            Smart move to get a low ball appraisal if you don't get caught. If you do get caught, you could be in some pretty deep doo-doo.

            Trustees can and do reopen BK's if they smell money or learn of significant financial changes.

            I would most definitely wait out the 180 day period, post close, for sure if I were in your shoes. Maybe even go a full year to be on the safe side.
            Filed Ch 7 - 09/06
            Discharged - 12/2006
            Officially Declared No Asset - 03/2007
            Closed - 04/2007

            I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

            Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

            Comment

              #7
              SEV means "state equalized value". In my state you typically double the sev and that is the value of your home according to your state. I had done major improvements to this home in the last 4-5 years which will help to increase the value. I do think waiting is my best bet. Thanks!

              Comment

                #8
                I gotchya. Where our house is, it's the Tax Assessed Value. And the TAV is about a third of the true market value.

                Just curious, but how did you get the SEV thru the Court??

                Attnys are asking us if we have a recent fair market appraisal on our house. Nope. But we do have a contingent offer in place. So the attnys say that offer will serve in place of an appraisal.

                I guess what a willing buyer has offered to pay is as good as an appraisal. Thank goodness. I can't imagine having to come up with an extra $300-$400 to get a Fair Market Appraisal done on a property that's going in our BK.
                Filed Ch 7 - 09/06
                Discharged - 12/2006
                Officially Declared No Asset - 03/2007
                Closed - 04/2007

                I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

                Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

                Comment

                  #9
                  there was never discussion about it, I don't know why it worked out like that. I got in under the old law does that make a difference? What state are you in?

                  Comment

                    #10
                    Our house is in Missouri. We've moved on to another State due to job change. Can't sell the house so it's going in the BK.

                    Maybe that's the difference. You kept yours. We're giving ours up.

                    The attnys all ask about how much we owe, how much the offer is, would we make any money off the deal?? When they learn it's a break even deal, pay the mortgage, the realtors, and the fees, then they say OK.
                    Filed Ch 7 - 09/06
                    Discharged - 12/2006
                    Officially Declared No Asset - 03/2007
                    Closed - 04/2007

                    I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

                    Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

                    Comment

                      #11
                      Right, they just want to make sure you get no money out of it

                      Comment

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