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Who is elegible?
Debtors meeting the following requirements:
There are two types of Bankruptcy Refinances. Just as in any refinance, a borrower is looking for a lower mortgage payment. This is known as a refinance affecting rate and term. The other type of refinance is where a borrower seeks to "cash-out," in order to obtain not just money to payoff the existing mortgage(s) but also to convert the equity in the property into cash.
Both objectives can be reached even in a Chapter 13 Bankruptcy. Its important to discuss with your attorney what affect if any the refinance will have if your plan is to only refinance for a lower mortgage payment.
The Process is very similar to when you acquired your original mortgage, except this time the Bankruptcy Court Approval will be required as you are under the supervision of the court.
1. The first step is to contact your bankruptcy attorney for the above referenced Bankruptcy paperwork.
2. Fill out the application for Pre-Approval and upload your documents there.
THE CASH OUT AMOUNT
This "cash-out" amount is then used to pay-off your bankruptcy case. You will need to order a bankruptcy payoff statement from your Chapter 13 Trustee in order to determine just how much to borrower for payment of the existing mortgage as well as the bankruptcy.
Our loan officer will discuss the program guidelines with you as there is a maximum amount that you are allowed to borrower.
By adding up these four components below, you will then know your mandatory amount to borrow.
Please note that program guidelines can change at any time and the sidebar reflects just the main points. Review our Frequently Asked Question section below.
Our Chapter 13 Refinance is available in Florida for owner occupied properties and the following states for non-owner occupied refinances:
Michigan - Colorado - Connecticut - -Delaware - Florida - Ohio -Georgia -Illinois-Pennsylvania - Texas - Maryland -Massachusetts - Washington
Advantages to Getting a Mortgage After Bankruptcy May Include:
Cash-out refinance options
Lower mortgage interest rates
Shorter home loan terms
Low down payment options for qualified home purchases
The ability to skip 1-2 months of payments for refinancing
Pay off your Bankruptcy Plan sooner