Refinancing a mortgage is possible during a Chapter 13 bankruptcy plan. In fact, a homeowner may become qualified to refinance his mortgage after a year of timely payments on his behalf insolvency plan. As stated by the Nolo website,”A Chapter 13 bankruptcy plan enables a debtor to maintain personal property, while repaying creditors over a period of 3 to 5 years.” Refinancing your mortgage may help repay your bankruptcy strategy.
Determine your goals for refinancing. A new mortgage could pay off an present home loan, credit cards, automobile loans, tuition or offer money from the equity in your home.
Talk to your bankruptcy attorney about refinancing your home loan. Your attorney can provide advice on insolvency procedures and the process for getting the approval of the trustee.
Find lenders such as Lending and GMAC Tree who can offer a house loan as you’re in bankruptcy. During a bankruptcy your options for refinancing are rather limited. Aim for a Federal Housing Administration, or FHA, loan to secure a competitive Rate of Interest. Options may be also provided by subprime mortgage loans for refinancing your mortgage.
Get your bankruptcy trustee’s acceptance. The trustee will review the development of your Chapter 13 bankruptcy plan. A strategy reflecting payments which are made on time for 1 year or even greater, increases your opportunity for obtaining the trustee’s approval.
Apply for a home loan to refinance your current mortgage. Your loan officer provides forms such as fantastic faith estimate, a loan program and other disclosures. You should review and sign documents where indicated. Additionally, you’ll need to provide a copy of your bankruptcy payment history, written permission from the trustee, bank statements, tax returns and two recent pay stubs.