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Are there any lenders for a refinance when the homeowner is in Chp 13?

  • February 05 2009 - Anacortes
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Answers (5)

Kudos Mark,
If you can handle a 13, I think it is great. I don;t do FHA loans, but have never heard of an active BK (not discharged) being able to be funded.  You say you did it. I will take your word for it.  Keep rockin'.
  • February 06 2009
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FHA is your only bet.  Just closed a Ch. 13 a few months ago.  We paid off her 1st mortgage and her entire Ch. 13 debt, and saved her about $1000/mth...and took the heavy weight off her shoulders.  Of course, she had the equity to do it.  You'll need a copy of the BK (all schedules) as well as confirmation from the trustee that the payments for the 13 have been timely.  It's called the Trustee's Report of Receipts and Disbursements and it will verify that you are currently in good standing.  If it's unclear, a letter from the trustee will be required.  Definitely doable.
  • February 06 2009
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PRIVATE LENDERS ONLY.  If you are IN CHAPTER 13.. forget FHA/VA/FREDDIE/FANNIE...  there is nothing they can or will do when in chapt 13... Tons of equity and a private investor... both are very hard to come by these days.  I wish I had different or better news, but you are seeking a realistic answer in your stressful situation and pursuing road-blocked avenues may prove costly and futile.  I wish you well, but this may come down to "mercy" and a MOD from your mortgage holder(s)  or it is a matter of time prior to foreclosure and eviction.  If it comes to that....SAVE SAVE SAVE every last penny you can because once put out in the real world (RENTAL)  the evictions are very swift.. No pay..no stay... Mortgages give the occupant so much more FREE time.  I wish you well.
  • February 06 2009
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In addition to being in a Chapter 13 payment paln for 1 year - with no late payments on any accounts - you will need permission of the bankruptcy trustee. Look for an FHA lender.

  • February 06 2009
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FHA is your choice, it requires that you have paid on your 13 (in a timely fashion) for at least one year.  Of course, the payments must have been on time, and there typically cannot be other lates since going into the 13.

With FNMA looking at two years after discharge (five years for a Chapter 7), FHA is probably your best bet.
  • February 05 2009
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