Refinancing mortgage

[bkinfresno]

Our mortgage is currently with Chase and we would like to refi and get some equity out of our house to buy a new a/c unit. We have an appt tomorrow with them, but would like some other options.
Any banks or companies out there giving loans to some who have never missed a payment on the house, we are over 2 yrs post chap 7 and our credit scores are around 640

[Drazil65]

Hi, I guess my first question to you is whether or not you reaffirmed your mortgage in the chapter7? If you did then I guess you could call them and ask at this point. If you did not then I think the bigger question for you to consider is do you want to be on the hook for the mortgage again? If the mortgage was discharged and you have been just doing a pay and stay are you sure you want to attach that debt again and can you afford to do that in the future? Although a possible rate reduction sounds good in theory you have to think about the future and what if something happens where are no longer able to pay the mortgage. Good luck!

[btbeme]

If you did not reaffirm, then your best bet is to call them and ask them to initiate an in-house refi aimed at dropping your monthly payment. You can then use that extra monthly amount to purchase what you need for the home. Otherwise, doing a traditional refi - especially a cash-out refi - is pretty much a non-starter only 2 years from discharge. As as Drazil says above, a traditional refi will put you back on the hook.

An in-house refi should include the clause that your BK discharge would remain in effect, but you will need to make sure that clause is there before signing your final loan docs.

[sh9730]

SO, really what BTBEME is suggesting is an in house loan MODIFICATION. And I agree - that is what I did with Chase. The loan was discharged in the BK, but then I did a modification to lower my payments but did not get back on the hook for the loan.

HOWEVER, this OP has the slight twist that what they are hoping to do is cash out some equity in order to solve a broken AC. A modification will not accomplish that - and Im not sure 2 years is enough to get a refi...and my belief is that your ONLY hope would be with your existing lender, and even thats a long shot.

Best of luck.

[btbeme]

SO, really what BTBEME is suggesting is an in house loan MODIFICATION. And I agree - that is what I did with Chase. The loan was discharged in the BK, but then I did a modification to lower my payments but did not get back on the hook for the loan.

HOWEVER, this OP has the slight twist that what they are hoping to do is cash out some equity in order to solve a broken AC. A modification will not accomplish that - and Im not sure 2 years is enough to get a refi...and my belief is that your ONLY hope would be with your existing lender, and even thats a long shot.

Best of luck.

The remainder of my message suggested using the savings from a smaller payment from the mod to purchase necessities for the house. I am not aware of any bank that will do a cash-out anything or a HELOC or other sort of method that will get cash up front after two years from discharge.

[bkinfresno]

Hi, I guess my first question to you is whether or not you reaffirmed your mortgage in the chapter7? If you did then I guess you could call them and ask at this point. If you did not then I think the bigger question for you to consider is do you want to be on the hook for the mortgage again? If the mortgage was discharged and you have been just doing a pay and stay are you sure you want to attach that debt again and can you afford to do that in the future? Although a possible rate reduction sounds good in theory you have to think about the future and what if something happens where are no longer able to pay the mortgage. Good luck!

No, we did not reaffirm anything in our BK, we just road it through. We have never missed a payment and have always been current on our payments for the life of the loan (11 years) and we got a great deal when we bought our house and even though the housing market started feeling the effects of the recession, we still have about 80k in equity in our house. So to answer your question, there is no doubt in our minds would we want to walk away from our house.

[bkinfresno]

refi

Also the reason why I want to refi is becase Chase is reporting my timely payments to Transunion and Experian, but not to Equifax. but is not show up as poss. credit on my credit report. I would like to have it reporting because it will help my credit rating. When I met with Chase the other day, they did say we qualified for a FHA refi, but techincally it would only save me about $10 in my monthly payments. My current rate is 5.25 and they offerened 3.75. We have approx 90k in equity and 20 years left to pay on a 30. The deal breaker is the "supposedly" mandandory $116 MI. which I have never had to pay because of the 80/20 rule back when I bought the house. Also, there was about 2300 worth of other fees they want to charge me to refi and we would be restarting back for a 30 yr loan. We would be stupid to jump on a deal like that. I did speak to our credit union, but they require 3 yrs wait after BK and they do not require MI. guess will have to wait a couple more months till we can try to refi, hopefully the mortgage rates will continue to be lower than my current rate.

[wantout]

See my thread here about this. Good luck.

http://www.bkforum.com/showthread.php?76786-Dropping-off-RE-FI-app-tomorrow

[Drazil65]

wantout: keep us updated on the appraisal part of this as I am curious as to what they feel the house is worth right now. I hear so many people say they have so much equity in their homes etc....until the appraisal comes back. What measurement are you using to assume how much equity you have before the appraisal comes back? Just curious what you are basing the numbers on, thanks!

[wantout]

wantout: keep us updated on the appraisal part of this as I am curious as to what they feel the house is worth right now. I hear so many people say they have so much equity in their homes etc....until the appraisal comes back. What measurement are you using to assume how much equity you have before the appraisal comes back? Just curious what you are basing the numbers on, thanks!

I had a market analyisis done a few weeks prior to applying for a refi, that came in between $90-$100. Appraiser said roughly $90 or so. I owe just over $50 between my first and second.