NMLS ID:1747872

 

 

 

© 2018  BEACON POINT MORTGAGE SOLUTIONS, LLC 

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Terms of Use 

LOAN PROGRAMS & RATES expressed are representative of some product offerings but are subject to CHANGE at anytime.

*Florida Second Home Specialist is not a state designation nor a Florida State endorsement.

“THIS PRODUCT OR SERVICE HAS NOT BEEN APPROVED OR ENDORSED BY ANY GOVERNMENTAL AGENCY, AND THIS OFFER IS NOT BEING MADE BY AN AGENCY OF THE GOVERNMENT.” 

Instead this service reflects the scope of our work and commitment to make it easy for out of state residents to finance a second residence in Florida.

 

Call us! 800-466-0664

BANKRUPTCY

REFI

Start Living Again!

Who is elegible?

Debtors meeting the following requirements:

A minimum 12-month repayment period in the bankruptcy has elapsed.    

Beacon Point 1

All required bankruptcy plan payments have been made on time.   

Beacon Point 2

The borrower has received written permission from bankruptcy court to enter into the mortgage transaction.
Your bankruptcy attorney will do this for you.   

Beacon Point 3

Full bankruptcy papers are required.  Contact your attorney for most or all of the following:
  1. PETITION & SCHEDULES
  2. A RECENT TRUSTEE DISBURSEMENT LEDGER & TRUSTEE PAYOFF. (this can be ordered by contacting your Chapter 13 Trustee).
  3. COPY OF DOCKET REPORT
  4. Copy of the court's confirmed (approved) Bankrupcy plan.
  5. Order Confirming Plan.

Beacon Point 4

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

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. 

 

GET PRE-APPROVED

01/

Loan-to-Value

   Rate & Term Refi

Generally. 75%

02/

Cash Out Amount Limit

(% of Prop Value)

In general, for loans under 1 Million...

Owner Occupied Residences, the loan amount cannot exceed this percentage of value of the property. 

SFR    -75%

Condo / 2-4 Units -70%

For example for a home valued at $200,000 the loan amount cannot exceed $150,000 for a single family home.

03/

Minimum Loan Amount $150,000.

The minimal Loan Amount is $150,000 without exception.  The maximum loan amount is $2 Mil.

04/

Payment Shock 

In order to avoid Payment Shock, generally the new mortgage payment shall not  exceed 3 X  the current housing payment. Payment Shock = (Proposed Housing Payment /Present Housing Payment) * 100.

05/

Debt-to-Income Ratio

In general DTI cannot exceed  43% of  the debtor's gross monthly income with few exceptions up to 55% 

06/

Reserves

For loans under $1 Million for Owner Occupied Residences, 2 months (SFR) or 4 Months (Condo /2-4 Units)  of minimum reserves. A min. of  6 Months  reserves are required  for Non Owner Occupied property. This requirement may be excused for Rate-Term refinances.

07/

Credit Score Min 500

The applicable credit score is the middle of three scores provided for any borrower. If there are multiple borrowers, then the lowest applicable score from the group will apply and that score must be at least 500.

08/

Credit Trade Lines

3 tradelines reporting for 12+ months or 2 tradelines reporting for 24+ months with activity in the last 12 months

• Any non-mortgage account can be no more than 30-days delinquent at time of application.  Any delinquent account must either be brought current or paid off at closing.

09/

Prepayment Penalty

None for Primary Residence & Second Homes\ Non OO 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance

10/

Escrow Account Waivers

Escrow Waivers Impounds are required

11/

Collections & Chargeoffs

Collections & Charge offs including judgments, garnishments and liens must be paid before closing  except medical bills up to $10K and debts that by statute are non collectible because they exceed the statutes of limitation period.

12/

Escrow Account Waivers

Escrow Waivers Impounds are required

13/

Vesting of Title

Fee Simple Title.  No Trusts permitted.

14/

Tax Liens

Tax Liens paid off prior to or at loan closing with exceptions.

15/

Documentation

Prior Two Years Tax Returns or for Self Employed Individuals at least prior 12 Months of Bank Statements.

Program Guidelines

Rate & Term 

You get a lower mortgage payment and continue with your plan payments.

TOTAL PAY-OFF

Your Bankruptcy case will conclude earlier and you will get a discharge after Trustee is paid.

   

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.

 

MORTGAGE PAYOFF

This may be ordered from your mortgage company or their attorneys. .

CLOSING COSTS

You will get a good faith estimate or Loan Estimator from your Beacon Point Loan Officer. 

TRUSTEE PAYOFF

Your Bankruptcy case will conclude earlier and you will get a discharge after Trustee is paid.

ATTORNEY FEE

If Attorney is not paid from plan payments or if additional fees are permitted with court approval.

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:

  • Lower Payments

  • 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

What is necessary for Bankruptcy Court Approval?

MOTION TO INCUR DEBT

BEACON POINT 1

Check your  District's Local Bankruptcy Rules, Standing Court Orders and Administrative Orders in order to determine the contents of the Motion to Incur Debt and the noticing noticing requirements.  A Sample Motion to incur debt can be downloaded here.

 

 

EXHIBITS

BEACON POINT 2

Beacon Point's Loan Estimator or Goodfaith Estimate & Truth-in-Lending Statements. 

We will gladly email documents to you upon request. Simply call Beacon Point and we will email same. 

PROPOSED ORDER

BEACON POINT 3

In addition to comporting with the Bankruptcy Local Rules and administrative orders of your district, in the event that the refinance involves a cash out, the proposed order must direct payment of proceeds to the  Chapter 13 Trustee. 

After the motion is granted, please upload it into our portal.