Refinance

[BradS]

Hi, I'm new to this forum. We filed Ch. 13 bankruptcy in Aug. of 2006. We currently have a house that we bought in Aug. of 2004 on a 2 year ARM. Well, the ARM has been up and of the course the payments keep going up as well. I was wanting to know if there is some way we can refinance this mortgage so that it will be at a fixed rate and if so, do you have any suggestions on where I can do this? I've talked to Quicken Loans and they won't touch it. Please, does anybody have any suggestions? Thanks.

[lrprn]

Welcome to BK Forum, Brad - glad you found us!

Your best bet is to work with your lawyer to file an amended Ch 13 plan that incorporates the increase in your mortgage. No reputable lender is going to touch you in an active Ch 13. The ones that might consider it you don't want because the APR is going to be very high. You'll be in worse shape that you are now.

Call your lawyer and start working on filing an amended plan. Hang in there - keep us posted on how things are going, ok? Again, welcome to the forum!

[BradS]

We have be amending to the plan with the lawyer everytime the payment has gone up. I was reading on the 'net that it is possible to refinance while in Ch. 13 but you would have to wait at least 12 to 18 months before you could do so. Basically, you needed to show a steady payment history into the plan so I was just wondering if anybody else on this board had a similar situation at one time or another and had a solution as to what lending company they have used in the past.

Our budget was already a tight one going into this bankruptcy so we really can't afford these payments to keep going up because eventually we will not have enough to meet the basic necessities to get by. Any more help would greatly be appreciated.

[howdidithappen]

I was told by the lawyer that I saw (although I was not impressed with him) that 12- 18 months into a chapter 13 you can refinance since you've kept your payments up to date. I'm between a rock and a hard place - I have loads of debt and loads of equity in my house - When I file I will barely (if not at all) have enough money to get by given that I was told I would have to pay all my creditors back 100%.

[BradS]

Sorry to hear that, howdidithappen. I know that the interest rate is probably going to be high when/if we can refinance but I'm sure it will be better than the payment going up another $120 or so every 6 months. Under this new bankruptcy law, they really do put you on a tight budget and our unsecured creditors are only getting about 4%.

[BradS]

Any more suggestions on what place might be able to refinance our mortgage loan? It will greatly help. Thanks.

[Minnymouth]

You might try some of the lenders that are advertised here on the forum..... they are bankruptcy friendly, but of course the rate will be a little high right now for you.

Be sure you contact your Trustee that you need permission to do this also.......

Then in 2 years -3 years as soon as your 13 is over refi again to a lower interest rate...... at least it won't be on the increasing one....

Minny

[BradS]

Are you referring to the Google Ads or some other ones? Please let me know. Thanks.

[tofargone]

Are you looking to refinance just your home or refinance and pay off your 13?

[BradS]

I was looking into just refi the house cause I'm not sure if we will/want to go the other route.

[BradS]

Which advertised lenders are you referring to? Any help will be appreciated.