Profile picture for postitall

how can I refinance to get rid of high 2nd mortgage, with negative equity and a recent bankrupcy

Filed bankrupcy a few months ago and we are on a 5 year payment through bankrupcy court. We need to refinance our first and 2nd mortgage to get a much lower payment. Our firts mortgage payment is about $1000. a month. apprx 5% interest.  Our 2nd is the one we need to get rid of  $800. a month  8% ! Please Help!
  • October 06 2010 - York Township
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (3)

At a minimum you will need to be atleast 2 years away from you BK with a perfect payment history since. You mentioned the house was under water so that will be limiting many options there as well. Best bet...pay as agressively as you can to cut the balance down over the next 2 years and hope for values to rebound.
  • August 19 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

If you just filed in late 2010 and you are in the repayment period of a chapter 13 bankruptcy there is a decent chance that your current mortgage servicer won't do a loan modification for you.  Now please keep in mind they shouldn't not allow you to apply for a modification but most likely after spending many months trying to get this done they most likely won't approve you. 

Here is the deal...  if you are in a payback for your chapter 13 you will need to show at least a 2 year perfect payment history before most lenders will talk to you about doing a refinance.  On top of that once you get to that point you will be asked for a very detailed reason why you had to file.  This is where it may get tough.  Depending on the situation surrounding your bankruptcy you may still be turned down for financing. 

My suggestion is to pay the bankruptcy on time for 24 months then give a local mortgage professional a call. 
  • August 19 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Try calling the loan servicer (who you make your monthly payments to).  They might be able to do a loan modification for you because it will be hard to refinance.
  • October 06 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.