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Refinance after Chapter 7

My husband died rather suddenly last year, leaving me with a mortgage, line of equity loan, credit card bills, and medical bills. Down to one income the only I've had to keep my head above water is to file a Chapter 7 bankruptcy, filed a couple of months ago. Even with the unsecured bills off the table, there is little to no money left after paying all the minimum Have-To bills. I was wondering if it is possible to refinance my home into one mortgage that is more affordable. There are only six years left on the original mortgage and yes, I know that I would paying a high interest, but if the combination of the mortgage and home equity loan could be lowered substantially I am not opposed to refinancing with a long-term loan again. A person still has to have a place to live, and even going back to renting is expensive.
  • August 21 2013 - Fremont
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Answers (4)

Best Answer

I too am sorry to hear about your misfortune.  You should get with a lender to take a full application to see what options are available.  Your situation does fall within the extenuating circumstances so there may be some options available.  I am in the bay area as well and happy to discuss further, just get in touch through my profile.  Best wishes to you.
  • August 21 2013
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None of the typical loan programs will allow a refinance after only a few months after a BK filing. If you are over 62, you may want to look into a reverse mortgage if you have enough equity in the home,
  Other than that, the only other option would be a small local bank that will look at the big picture.
  • August 21 2013
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Sorry for your unfortunate set of circumstances. I take it the BK has not been discharged? Unfortunately, at this time a refinance would be out of the question, but try contacting your current lenders and ask them for a modification. 

Good Luck!
  • August 21 2013
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You may be able to look into an FHA or conventional. I'm sorry to hear about everything, from past experience that definitely qualifies as an extenuating circumstance. Remember, the underwriters are people and if it is significantly lowering your payment, I could see some flexibility.
  • August 21 2013
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