I filed for Chapter 13 to keep my home. I was out of work for over a year and things really went bad. I am back to work now making about 75,000. I have $50,000 equity in this house. Because of the Chapter 13 my credit score took a huge dive. Any suggestions? Home appraised for $230,000 and I owe about 163,000. Help!
2006-12-16 08:25:40 · 6 answers · asked by dgoldenboy67 1 in Business & Finance ➔ Renting & Real Estate
I am at a loss as to why now you want to use the equity in your house.
But it does not matter as your question was can you get an equity loan now. The short answer is yes you can. You might have low credit scores, but there are some lenders that will allow you to borrower against the equity in your house.
For your bankruptcy you filed the lender will charge you a higher interest rate as well as they might not allow you to borrower all the equity out of your property. For instance instead of allowing you to borrow 85%-90% of your equity you might only qualify for 80%.
You should contact a mortgage broker in your area, preferably one that specialize in sub-prime mortgages. He will require lots of proof that you can now pay your debts like a pay stub, W-2 and other items he will need to complete the loan process. Once he has all the information such as credit report, some way to tell the value of the property and your credit scores he will be able to tell you the loan programs you are qualified for, the loan amount you will be allowed to borrower and other things like interest rate and terms.
Now at this juncture you will be offerred a loan that is called a 2/28 or a 3/27 that simply mean that your loan will be fixed for the number of years either 2 or 3, but the loan is amortized for 30 years. You in fact would have a 30 year loan, it will simply adjust at the end of the 2 or 3 year period and your payment will be adjusted.
Don't be afraid of this, as by the time the adjustment roll around you should have made all your payments on time therefore you will be able to get a better loan at the prevailing low rates at the time. If you don't like the rates of a possible new loan just keep the loan you have, it is a 30 year loan any way.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2006-12-16 10:31:21 · answer #1 · answered by Skip 6 · 0⤊ 0⤋
Wait, first consider why you want an equity loan - what is it going to accomplish for you? Second, once you determine your true motivation, talk with a mortgage broker about what your goals are - not about getting an equity loan for which you probably do not qualify, yet. A first mortgage is much less risk for a lender than a second, so you may get a cash out refi when an equity loan may be not possible.
By the way, check your math - if your value is at $230K, and you owe $163K, your equity is the difference of $97,000.
2006-12-16 08:44:28 · answer #2 · answered by walkinandrockin 3 · 0⤊ 0⤋
I know a loan officer who specializes in chapter 13 buyouts. It will also depend on what state you are in. You could also use a credit repair service possibly to improve your score dramatically prior to refinancing. Email me for more info.
2006-12-16 11:14:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you had equity, why didn't you get the equity out to pay your bills instead of filing chapter "let everybody else pay my bills"?
2006-12-16 08:29:35 · answer #4 · answered by teran_realtor 7 · 0⤊ 0⤋
as quickly because it particularly is in foreclosures i do no longer think of so. Your terrific guess is to touch an lawyer, yet i think of you will ought to sell your abode at as quickly as in case you desire to avert the a bad credit. good luck.
2016-10-15 01:58:17 · answer #5 · answered by balikos 4 · 0⤊ 0⤋
doesn't that stay with you for 10 years
oooops
2006-12-16 08:28:01 · answer #6 · answered by tom4bucs 7 · 0⤊ 0⤋