What are the best methods for improving your credit while under chapter 13?
2006-06-25 10:51:52 · 5 answers · asked by honeybunchesofdeath 2 in Business & Finance ➔ Personal Finance
In answer to your question yes you may refinance your property out of chapter 13 bankruptcy. I have done it several times for clients. You must have enough equity in your home to do this,but I know of some lenders will go as high as 80% LTV for your loan depending on your credit score.
Now keep in mind that once the loan is approved you must have the approval of the court, your attorney should be able to take care of that for you. Any debts not completely paid must be paid out of the refinance.
My suggestion for you is to call a local mortgage "Broker", Ask them if they are able to do a loan for you as you are presently in chapter 13 bankruptcy. Ask them if they specialize in Sub-prime and Alt "A" loans. If not keep calling until you find a broker that does. Anyone else you will be wasting your time.
You will need a months of pay stubs, w-2 forms and fed taxes for 2 years from each borrower. You will also need 6 months bank statements from from all savings and checking accounts to include any 401k programs each borrower might haveas well as a complete copy of yuour chaptere 13 bankruptcy. Once you have given these documents to your mortgage broker, complete a loan application he will then run a credit report to find out your credit score. Once the credit report has been acquired and he knows your credit score he can then find out what type of loan he can get for you.
Once your loan is approved you broker will tell your attorney when to go to court to end the bankruptcy, you must be out of bankruptcy one day.
In my experience the best loan for a preson in bankruptcy are called 3/27 or 2/28. Both these loans are ammortized for 30 years, the first number indicates the number of years these loans are fixed also there is a pre-payment penalty for paying them off before that time. After that they go to an adjustable loan. So you select the one you feel comfortable with. Whichever you select you have 2 or 3 years to get your credit in order. If you have paid your mortgage and consumer debt in a timely manner when you refinance you will get the best rate based on your credit score.
About 60-90 days before your loan hit the adjustable period contact your mortgage broker to refinance your loan to avoid the pre-payment and the loan going into an adjustable.
If you can not find anyone locally email me at loanmasterone@yahoo.com
I hope this has been of some use to you, good luck.
"FIGHT ON"
2006-07-05 12:19:08 · answer #1 · answered by Skip 6 · 0⤊ 0⤋
Yes if you find a lender willing to grant the refi and the bankruptcy court allows it. To improve your credit make any post petition payments on time ( mortgage, car loan for example) and ALWAYS make your bankruptcy payments on time. Your credit score tanked when you fell behind with your debts before filing the bankruptcy then got worse when you filed so stop worrying about it. Time will be your friend so wait until you've completed the bankruptcy then rebuild.
2006-06-25 14:13:12 · answer #2 · answered by hsgcoun 2 · 0⤊ 0⤋
If you have significant equity in your house there may be a local bank that keeps mortgages in house that will be open to it. You will have to submit a lot of paper work and probably a letter discribing your bankruptcy situation. Do not accept a high interest rate if there is significant equtiy.
2006-07-07 12:34:12 · answer #3 · answered by mwardmward 2 · 0⤊ 0⤋
~If you are in Chapter 13, ask your lawyer. If you don't have a lawyer and you have filed, or are thinking about filing, you are a fool. Then again, you are posting the question here, obviously with the hope of getting legitimate information. Nuff said.
2006-07-05 07:57:14 · answer #4 · answered by Oscar Himpflewitz 7 · 0⤊ 0⤋
We do chapter 13 BK buy out.
You may refinance your home, bk debts and cash out.
rondelu2002@yahoo.com
http://575nomoneydown.com
2006-06-25 15:45:44 · answer #5 · answered by ron d 3 · 0⤊ 0⤋