I am in a chap 13 bankruptcy now, I have been trying to get a loan modification threw american home mortgage servicing for approximently the past 18

Asked by Peterman7, Manitowoc, WI Tue Jan 12, 2010

months with no avail. Is there any company willing to do refinancing while in a chap 13 bankruptcy?

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Hannah Flieg…, Agent, Larkspur, CA
Wed Jan 13, 2010
Hi Peter,

Here is my concern with a bk and a loan modification. Often they do not mix and you are making yourself very vulnerable. If you are able to obtain a loan modification during or after your bk is discharged often the lender slides in legal documents that make the "loan modification agreement" outside your bankruptcy protection. The lender may also offer you a 2-5 year loan modification interest only or something that is "temporary". Moving forward you already played your bk card to protect yourself but now this "new agreement" is not included in your bk filing and you are on the hook for this debt.
Now since you only have a temporary loan modification you need to deal with the loan in the future 2-5 years and we do not know what interest rates are going to be and we do not know what the new lender's criteria is going to be for borrowers with bk history. We do not know what the environment will be for loan mods in 2-5 years (Example: hardly anyone ever heard of a loan mod 5 years ago?)
Whoever you deal with on your loan modification should understand that you really need a 30 or 40 year fixed to protect yourself and include your bk attorney in this decision. Your bk attorney might have a solution for you or might not want you to sign anything that puts you on the hook personally for this debt. You have several moving parts here and I would like to see you successful wtih a good loan modification that does not make you vulnerable moving forward. Good luck!

Hannah Fliegel
The Credit Repair Expert
415-999-9348
0 votes
, ,
Tue Jan 12, 2010
if you are in a chapter 13, most likely you are current on your mortgage especially if it's been 18 months while in bk13. If you are trying to modify while in 13 and paying on time, they will not modify your loan because there are a bazillion (not a real number) people ahead of you who are not protected by the courts and about to lose their home. Call a lender, have them pull credit and see if your mortgage is delinquent. If it is, you need to make 12 on time payments to refinance. If it's on time, you'll need to get permission from the court to refinance. Once you refinance, don't be late on the mortgage, ever, ever, ever. Actually, after a bankruptcy, you can never be late on anything unless you want to kiss bye-bye to ever buying a house again or for a very, very, long time.
0 votes
Karen Wenzel,…, Agent, Brookfield, WI
Tue Jan 12, 2010
I don't believe there would be another lender that would refinance you while you are delinquent or with the Bankruptcy. Your best bet is to continue to press your current mortgage holder. Make sure you contact them at least weekly, if not more often. Keep copious notes of who you talk to, what is said, time that you talk with them and try to work with the same person (if possible).
All the Best to you!
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Barbara Q., , Bergen County, NJ
Tue Jan 12, 2010
Other brokers will not refinance you if you are currently delinquent on your existing mortgage and in bankruptcy.
Your only solution is trying to deal with your current lender...be persistent.
0 votes
Dallas Texas, Agent, Dallas, TN
Tue Jan 12, 2010
Recommend to contact other mortgage brokers 18 months is a longggggggggggggggg time wait for an answer push on determine what other answers can be thru another lender

Good luck
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