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Can I immediately refinance my mortgage after a Chapter 13?

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PHATBody
Valued Member

Can I immediately refinance my mortgage after a Chapter 13?

I am in year 4 of a 5 year chapter 13 bankrupcy.  My ex-husband is wanting his name removed from my mortgage.  He signed a quit claim deed to remove his ownership of the house.  He has taken me to court because he wants the courts to force me to sale the house to remove his name from the liability.  Our divorce decree states that i had 18 months to remove his name, but since we were behind before the divorce it was hard for me to catch up the payments.  So i filed the Chap 13.  I have been current on my mortgage and my 13 payments for the pass 4 years.  My credit score is currently 639.  Is there anyway I could re-finance a month or two after discharge? 

Message 1 of 16
15 REPLIES 15
ezdriver
Senior Contributor

Re: Can I immediately refinance my mortgage after a Chapter 13?

Unfortunately, it would be a very difficult thing to find a lender that would refi your mortgage while you are still working through it. A ch13 may be less difficult than a ch7 but the only way to know is to take to a few lenders.

Message 2 of 16
Anonymous
Not applicable

Re: Can I immediately refinance my mortgage after a Chapter 13?

From what I have been researching most lenders will not go near a Chapter 13 until at least 1 to 2 years after a discharge. We have been looking into buying another house however, it looks like we have to wait a bit. Can't hurt to go talk to a few lenders in the meantime.

Message 3 of 16
mavric
New Contributor

Re: Can I immediately refinance my mortgage after a Chapter 13?

We are doing a HARP refi with Loan depot ,with 2 yr's to go in ch13.      Just call up and see what they say?

 

  

Message 4 of 16
PHATBody
Valued Member

Re: Can I immediately refinance my mortgage after a Chapter 13?

Thank you all for your responses.  I will try to work with a mortgage broker and will post what I find.

Message 5 of 16
PHATBody
Valued Member

Re: Can I immediately refinance my mortgage after a Chapter 13?

BeachGlass,  wow, I was just looking at your credit scores.  Did you get that big increase because of your discharge, because your new credit is not old enough?  Just wondering if your scores increased because of your discharge?

Message 6 of 16
Anonymous
Not applicable

Re: Can I immediately refinance my mortgage after a Chapter 13?

I have been working on cleaning up the CR since discharge on 9/11. Also applied for a secured savings credit loan and secured credit card through credit union. Then applied for a Cap 1 and a Barclays. It has been a slow crawl, however I did see a big increase when the installment loan showed up on the CR. On that day it reported a 50 point increase. I am  not sure if that is what did it, or the discharge itself or just the combo of everything. The Equifax is the highest right now and hoping that the other two catch up. The first step that I should have taken was clean up the CR's, but I did it backwards as I did not have the knowledge I have now, thanks to the forums. 

Message 7 of 16
StartingOver10
Moderator Emerita

Re: Can I immediately refinance my mortgage after a Chapter 13?

Actually, you should be able to refi now, even before discharge in a Ch 13. All you have to show is at least 12 months of ontime payments (the last 12) and you have 48 months of ontime payments.

 

Don't go to a broker.  Go to a mortgage banker that underwrites and funds their own loans that way you will know up front, right away if you qualify.

A lot will have to do with your DTI and of course you will need trustee approval unless you have a discharge in hand.

 

 

Message 8 of 16
PHATBody
Valued Member

Re: Can I immediately refinance my mortgage after a Chapter 13?

Hello All,  just wanted you to know that i contacted Loan Depot and was able to get approved for refinancing my home while in Ch 13!!!!!   YAY!!!!!!!!!!!!!!!!   I found out that my credit scores are accually pretty decent!   Experian: 688,  Eq: 643, Trans Un: 665.   I'm hoping for a jump when I get a discharge at the end of next year.   I can not thank all of you enough for your help.  I have been so worried that my Ex would ask the courts to make me sell my house.  I have worked so long and hard to save it.  And you all helped me do it.  The agent I worked with ask me how I found Loan Deport, I told him that this forum helped me.  He also is a member of this forum!!! 

Message 9 of 16
Anonymous
Not applicable

Re: Can I immediately refinance my mortgage after a Chapter 13?

Congrat's !!!! Smiley Happy

Message 10 of 16
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