We have found a collection of programs that are specifically for those who want to refinance their home while in a chapter 13 bankruptcy. These programs typically require more equity in your home to compensate for the Chapter 13. Show Access to the Best OptionsDon’t spend hours searching the internet trying to find a mortgage. We’ve already done the work for you. We’ve spent decades finding the best programs for this specific challenge. What do we mean by the best?
All it takes is a simple phone call for you to discover what options are available to you. See Your Options Juli A. GleedMortgage Broker A home loan specialist with over 25 years of experiance. She can help you find the best loan program that meets your needs. Refinancing your home loan is possible during a Chapter 13 bankruptcy and may even help you meet repayment obligations sooner than the requisite three to five years. However, you’ll need to meet the lender’s refinancing requirements, notify your Chapter 13 trustee and follow Chapter 13 laws for incurring new debt. Research Loan OptionsBegin researching loan options once you’ve made at least 12 on-time debt repayment and mortgage payments to the trustee or your current mortgage company. While the decision about whether you qualify is ultimately up to the mortgage company, an FHA refinancing loan or similar option can make qualifying easier. Contact the Right PeopleOnce you find a lender willing to approve your refinance application, contact the trustee assigned to your case. Refinancing while you are in a Chapter 13 debt reorganization case requires prior approval from the bankruptcy court.
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Submit Required DocumentsAlthough the required forms and documents may vary slightly depending on your location, you’ll generally need to file a motion with the bankruptcy court. The motion explains your reasons for wanting to refinance, how it will affect your repayment plan and what you plan to do with any money you may receive in the refinance above the costs of paying off the original loan. For example, you may want to pay each creditor a percentage or pay everyone in full from these funds. You’ll also need to submit a written authorization to release information to a third party; a preliminary title report showing the home has no outstanding liens, including tax liens; an estimated HUD-1 Closing Statement; and the amount of your new mortgage payment if you not paying off your plan. From start to finish, it usually takes about 14 business days from the date the motion is filed to get permission to complete the refinance transaction.
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Writer Bio Based in Green Bay, Wisc., Jackie Lohrey has been writing professionally since 2009. In addition to writing web content and training manuals for small business clients and nonprofit organizations, including ERA Realtors and the Bay Area Humane Society, Lohrey also works as a finance data analyst for a global business outsourcing company. |