Refinancing to buyout a Chapter 13 Bankruptcy?

[heffedeba]

I am in the 43rd month of a 60 month Chapter 13 bankruptcy plan.  I am also separated from my husband for 21 months and am trying to save up money for a divorce.  My husband gets a disability check and I am his payee, out of this money the utilities, food, clothing and medical bills are paid. 

I pay for the mortgage, taxes, insurance and Chapter 13 plan.  Needless to say I am broke before I even get my check.  I can't get him out of the house because he is on the mortgage and the deed and he refuses to leave and I refuse to live with him.  I've been looking around for mortgages but am weary of predatory lenders.  My Fico score has come back up to 650 but that's still kind of low. 

Is there some place that I can get a Chapter 13 buyout without having to worry that it's a predatory lender?  We took out a 30 year ARM mortgage in June 2001 @ 10.75%  and the payments have gone up and down over the past 9 years.  The interest rate will never be lower than the 10.75% for this mortgage and currently I am paying $1033 per month for the mortgage plus $517 for the bankruptcy plan and $350 per month for some back real estate taxes.  In all I would need a $135,000 mortgage and based on what I've been paying I could shorten the term to a 15 year fixed rate and still be under what I'm currently paying. I just need help finding someone that will refinance our mortgage.  Any suggestions? 

AGain my biggest worry is the predatory lenders, right now we are under the protection of the bankruptcy court.  I don't want to jump out of the frying pan into the fire but there's got to be something better out there than this.

[llecs]

I hope you didn't mind, but I moved your post here for some of the mortgage loan experts.

[ShanetheMortgageMan]

FHA loans are the only type of mortgages today that will do a bankruptcy buyout.  Used to also have sub-prime financing available that would do it, but sub-prime loans no longer exist.  Any lender that can do FHA loans would not be considered predatory, predatory lending has been outlawed on state and federal levels.

For the bankruptcy buyout you'd need court trustee approval, all payments on the Ch 13 BK paid as agreed, and the new mortgage amount could not exceed 85% of your home's appraised value (as FHA only permits cash out to 85% LTV now).  Your income would need to fit debt to income ratios no higher than 35% for the new housing payment, and with all other consumer debts (if any) couldn't exceed 45%... lenders may restrict it to the 31%/43% standard FHA debt ratios as well, it'd be up to an underwriter to make that call.  Since your husband is on the title of the home, he'd have to cooperate in signing the security instrument or be willing to be quit claimed off title.  You'd have to live in the home (not sure if you are living elsewhere, as you said you refuse to live with him and he refuses to leave)

650 score would be fine to qualify for the Ch 13 BK buyout.  What is your gross income, and how much are the property taxes and homeowners insurance?

[krielly]

Hi there. Just wanted to add a couple points about a 13 buyout, which you may already be aware of...

If you are 43 mos into your 13, then you filed under the new BK laws. As such, early buyout is only possible if you you are going to pay off 100% to creditors. Are you already in a 100% payback plan? If not, you probably wil not be able to end your BK early by simply paying off the remainder of your scheduled payments.........

Karen