Refinancing After Bankruptcy

by: RobertMelk Total views: 27 Word Count: 578
View PDF | Print View

Related Discussions Online:

Mortgage Refinance Loan
Posted by nilthongkam via Do Follow Social Bookmarking Sites

Mortgage Refinance
Posted by nilthongkam via Do Follow Social Bookmarking Sites

Mortgage Refinance Rate
Posted by nilthongkam via Do Follow Social Bookmarking Sites

Open Question: What risks, equity, and other expectations related to signing onto someone else's mortgage?
I have to refinance my home to avoid a big interest rate jump. Since my husband had a stroke and can no longer work, I don't earn enough to get it refinanced. The home is solely in my name. I asked my sister to help me by signing onto the mortgage. She's renting now. She's considering signing on, but we need help to know how to assess the whole situation in terms of risk, equity sharing...stuff like that. She already understands that the best thing she can do is to live here in order to protect her investment, so to speak. Living here would work because we have virtually finished basement that could easily be lived in. Here's the rub...as we approach the closing date, my sister is getting afraid of taking on this responsibility. I understand and feel it's because we don't have enough information. Is there a source that we can consult, without hiring a lawyer, which we can't afford? Topics: legal advice, mortgage refinance, risk reduction/mitigation, co-ownership of home, equity sharing read more...

Open Question: Divorce: House settlement due to divorce in this down market?
Me and my wife bought a house for $450,000 in 2007. Loan amount was $360,000, We have separated a few months back and this could lead to a divorce. The house prices in this area have spiralled downwards and the house may be worth $320,000 now. My wife has moved out and I have said I will take the mortgage payments, which I can manage. However, what are my options for a) removing my wife's name from loan b) removing my wife's name from the deed? Question 1: Refinancing in such down market would mean I will have to put in a significant cash. How much cash will I have to come up with? Question 2: Is there any other way I can remove my wife's name from deed and loan without refinancing? Selling the house is not an option in such a down market. read more...

Have you recently filed for bankruptcy? If so, you may be thinking that now is a good time to look at mortgage refinance to get a lower monthly payment to help you get back on your feet. The problem is that a lot of lenders are a bit hesitant to lend to anyone who has filed for bankruptcy, especially if you have experienced this financial challenge in the last four years.

Mortgage Refinance After Bankruptcy is Possible

If you have recently been through the bankruptcy process your mind is probably looking at all of the ways that you can save on your monthly bills to help you get back on your feet. Many homeowners assume that one of the easiest ways to save is by refinancing, but what you will find with lenders is that they do not want to finance someone who has experienced bankruptcy so recently. In fact, you will likely not be able to find a lender that will work with you until at least two years and up to four years after the fact.

You may be wondering what you are going to do if you cannot make mortgage refinance an option. The answer is that you have to find other ways to save and you need to get back to basics. You need to start building your credit again very slowly over the two to four years that it will take before a lender will work with you to refinance. These two to four years can feel like an eternity because so much can change during this time, but you simply need to take it in stride and instead of focusing on why you cannot refinance now, you should be focusing on getting your credit to a point where you cannot be turned away when the time comes.

Are you frustrated because you really would like to lower your monthly payment? It can be frustrating, but the reason why mortgage refinance isn't an option is because you are considered high risk. The lenders realize that you may have worked to keep from having to file for bankruptcy, but the fact of the matter is that is what happened and that is all they have to go on. Channel your frustration into repairing your credit so you can get a really great rate when the time comes to refinance.

The best thing you can do when you are waiting for the opportunity to refinance is keep your mortgage payments current. If you had all of your other debts discharged, you should make sure that the debts that you are still paying on stay current and even try to pay a little bit more, if at all possible. Staying current and paying all of your bills on time and exceeding the minimum amount due will show future lenders that you are serious about getting your credit back on track and that you are a great candidate for refinance.

Refinancing is something that you have to have decent to excellent credit to get it done and benefit from it. For this reason, you should not be in a hurry to refinance after bankruptcy. Instead, you should focus on doing all that you can to build your credit back up to where it should be so when the time comes you can get a great rate and take advantage of the savings that refinancing with good credit will offer you.

About the Author

Refinance.com is managed by a group of professionals in the Mortgage refinance field who can offer more information about refinancing even if you declared bankruptcy, to learn more visit our site at http://www.refinance.com/