topic Re: Refinance house after Chapter 7 in Bankruptcy

Refinance house after Chapter 7

AJR1 — Mon, 30 Jul 2018 14:56:21 GMT

Good Morning

Question I kept my house thru the bankruptcy - Discharged 6/22/2018

My motgage is 1845.00 a month @4% - I have 11 years left with a balance of 155000

Can I refi this soon after BK - These payments are killing me now

Thanks

Re: Refinance house after Chapter 7

Anonymous — Tue, 31 Jul 2018 04:40:32 GMT

@ShanetheMortgageMan ...... any advice for this poster who was recently discharged w/BK 7, for refinance?

Re: Refinance house after Chapter 7

ShanetheMortgageMan — Tue, 31 Jul 2018 17:40:46 GMT

A 4% interest rate is pretty good given the market rates today, so keep in mind you should be able to lower your payments (by stretching the remaining 11 years over a longer time) but it's unlikely you'll see lower rates at this point.

To qualify for Fannie Mae & Freddie Mac loan programs (generally the best terms) you'll need to wait 4 years after your Ch 7 BK discharge, or only 2 years if the BK was caused by an extenuating circumstance (medical, job loss, etc.). Fannie & Freddie are conventional loan programs.

VA & FHA loans just 2 years after a Ch 7 BK discharge is required (1 if due to extenuating circumstances).

There are other conventional loan programs out there that will allow as little as 1 day out of a Ch 7 BK discharge, but the terms aren't as attractive as the previously mentioned.

Re: Refinance house after Chapter 7

AJR1 — Thu, 02 Aug 2018 12:10:46 GMT

Shane

"There are other conventional loan programs out there that will allow as little as 1 day out of a Ch 7 BK discharge, but the terms aren't as attractive as the previously mentioned"

What type of programs ?

Re: Refinance house after Chapter 7

Anonymous — Mon, 06 Aug 2018 01:02:07 GMT

I refinanced my house right after a Chp 13 so I could get my ex wifes name off the mortgage. My interest rate went up some, not because of the 13, but because rates have just gone up since I bought the house originally. But it was easy and they didn't bat an eye at the fact I had just been discharged. In fact I started the process a few months before the discharge.