topic Re: Home Equity Loan after CH 7 discharge / property listed as debt in Mortgage Loans

Home Equity Loan after CH 7 discharge / property listed as debt

mira01172003 — Sat, 16 Dec 2023 21:06:37 GMT

The home was listed in the Ch7. All debts discharged 4 years ago. Current on Mortgage payment. Can I get a home equity loan? I have over $60,000 in equity.

Thanks

Re: Home Equity Loan after CH 7 discharge / property listed as debt

GreatLife — Tue, 19 Dec 2023 18:38:46 GMT

My thought is if a mortgage refinance with equity cash out might be a less complicated route?

Hopefully a forum member with bankruptcy experience will join in..

Re: Home Equity Loan after CH 7 discharge / property listed as debt

VAMortgageGuy — Tue, 19 Dec 2023 21:13:11 GMT

@mira01172003 wrote:
The home was listed in the Ch7. All debts discharged 4 years ago. Current on Mortgage payment. Can I get a home equity loan? I have over $60,000 in equity.

Thanks

Probably not. Most HELOCs have tougher guidelines ( ie: longer seasoning requirements for things like bankruptcy and foreclosure) because the loan carries more risk. Also, if you didn't re-affirm the 1st mortgage, a lot of lenders will look at that like a foreclosure.

Re: Home Equity Loan after CH 7 discharge / property listed as debt

ShanetheMortgageMan — Wed, 20 Dec 2023 20:29:05 GMT

A lot of home equity loans/lines of credit follow Fannie Mae guidelines when it comes to bankruptcy seasoning, which just requires 4 years after a Ch 7 BK discharge, so I don't anticipate that'll be a common roadblock for you.