Can you refinance mortgage in chapter 13

[Rwil72]

I have been in chapter 13 for a year now. I calculated if I can refinance my mortgage and HELOC I could save around $500 a month.  My middle mortgage score is around 640 and my wife's mortgage score is 690, she never filed BK. 

[pizza1]

Im not too well conversed in BK13's like I am in BK7's, but you will have to get approval from the trustee, which means your BK attorney will need to file a payment modification to adjust your payment plan to reflect your new payment.

Also, depends on the trustee....if they're are really stickler, they might adjust your plan to reflect the new lower mortgage payment, but then that extra $500 a month for refinancing they might take and put towards the plan, and adjust the length of your plan.

Ive heard of that happening quite often. But, hopefully you'll get a few more folks pipe in for you.

[jmw1]

Unless you are paying back 100%, you won't be able to pocket the mortgage savings until you are done with the 13. The trustee will simply increase the plan payment to eat up the savings and use the extra to pay your unsecured creditors. What makes this even worse is that you will have to redo your budget and all of your raises so far will get used to increase the plan payment even further. 

Another hurdle is you need to actually apply to see if you're actually eligible for the rates you hear on the radio. With a 640, you may not be eligible for those low rates at all or you may need to pay a lot of points. During the ch13, you will need to be FHA/VA manual underwrite and they tend to be very expensive loans.

[mavric]

We did Refi while in ch13 . Did a HARP went from 6.75 to 3.75, from 30yr[with 22 left] to 15 yr .  

   There's a lot that has to happen.   

 BTW  Quicken did the loan , just call an ask        Goog Luck

[Rwil72]

Thanks Mavric, did you have to do and FHA or could you do a conventional loan?

[mavric]

HARP was for  conventional loans , my was a fannie mai.   But i think you can do FHA also . They just call it something else. and with FHA you have PMI. 

i don't know if HARP is still around. Did mine back in 2016