I am currently in Chapter 13. I filed 10/04. I have a home with approx 100K in equity. I would like to pay my way out of BK at the 36 month mark (approx 16K) , pay off the second mortgage (which was down payment assistance, $7450) and pay off some of my student loans. Which will be better refinancing or HELOC? Will I even qualify for a HELOC while in BK? All responses will be appreciated
2007-03-01 13:25:02 · 3 answers · asked by da_red12 2 in Business & Finance ➔ Credit
A refinancing with cash out is your best option. Use the cash to pay off all your loans and keep some cash on hand, get a 30 year mortgage and you will only have one single payment to make and if its 30 years the payment will be lower too and you should be able to qualify as you have equity in the house and you will need to show a steady job too to assure the lenders that you are capable of paying the monthly payments on the new mortgage. Good luck.
2007-03-01 13:33:13 · answer #1 · answered by Akbar B 6 · 0⤊ 0⤋
depending on your MORTGAGE PAYMENT history alone, you can definitely refi out of a chap 13 if you still have a decent credit score, prolly 600 or above. do a straight refi for now, as a HELOC is nothing but a HUGE credit card attached to your house. after this bankruptcy you probably wouldn't put $5,000 on a credit card, why put your current debt owed on a revolving balance that has no set term to be paid off?!?!
ps if mortgage brokers solicit you online here to take out a HELOC, be wary.
2007-03-01 15:33:59 · answer #2 · answered by Brad T 2 · 1⤊ 0⤋
You probably wont be able to refinance while still in bankruptcy status.
2007-03-01 14:36:40 · answer #3 · answered by Movie Spice 2 · 0⤊ 0⤋