Refinancing after BK

[Anonymous]

Does anyone have any experience refinancing - althought I suspect in today's market, things will be much more difficult regardless...

We got into one of those interest only mortgages which is due to adjust in 1 1/2 years and the principal with then kick in; we will be 3 years from discharge at that point and right now our credit scores are mid to high 600s.   Does anyone know if there are any companies that are easier to work with in dealing with a mortgage after bankruptcy; are we better off trying to refinance now - or waiting until closer to the date it will adjust?  And advice or experience anyone can share would be greatly appreciated.

[johnsj21]

FHA allows you to refi 2 years after a chap 7 discharge or after 1 yr of making payments on a chap 13.  The only problem right now with refi is that home values have dropped sooo much that it is VERY likely that you owe more than the home is worth - making it almost impossible to refi since FHA will only refi up to 97% of the home.  My advice...starting paying down the priciple asap and then after a year look into refi.  Maybe the house values will be better and you'll have some equity in the place.

[Anonymous]

FHA is really going to be your only option, unless you can get your existing lender to rewrite the terms.

Conventional financing now requires 4 years from discharge and won't finance as much of the value.

The good news is that mid-high 600s is fine with FHA so anything higher is bonus.

[liz9100]

Call the bank and ask about rewriting the loan now. If they say no then wait and pay down the loan until you can. Keep the score going up and pay everything on time still good luck. Once I find out if I got the rewrite myself I will update others.

[ShanetheMortgageMan]

You might be a good candidate for FHA/HUD's new program, Hope for Homeowners.  It would require some cooperation from your existing lender to allow a "short refinance", but at least you'd be in a 30-year fixed loan the rest of the way.  Be aware of the "equity sharing" feature of this program where 50% of the future equity goes to the govermment upon the sale - however if you are in an adjustable rate, owe more than what your home is worth, and are looking to refinance, FHA's Hope for Homeowners could be a good option.  Read more info about it at Information on Hope for Homeowners

[Anonymous]

Contact you lender, and explain to them that you are interested in doing a Short Refinance, as you would want to get out of your current subprime loan and you currently owe more that your house is worth.  If they agree to do it, then you can contact an FHA lender/ broker to get a low fixed rate FHA loan.

[Anonymous]

What is a short refinance?  I've never heard of that.

[itzateach]

I have a ch 7 discharged bk from 2003 and bought my home in 2006.  I also just refinanced it at 6 percent and took cash out to pay off credit cards. We owed 276k and refinanced for 309. It appraised at 320k. I think the key is where you are located and if your home is holding value. I am in Utah and there are foreclosures and short sales everywhere, but great homes are still holding their equity.

[bamagirl1]

izateach what bank did u use 2 refi? i hv bk from 2004 interest rate 7% wld like 2 refi if possible but dont know where 2 start

[bamagirl1]

bump