Cape May, NJ asked in Bankruptcy for New Jersey

Q: I filed for Chapter 13 over a year ago and have been trying to refinance without any luck !

My wife passed away and took half of our income when she passed. I filed for Chapter 13 to save my home. I found a great paying job and got back on track and have been paying my mortgage & back arrears on time for the last year. I have my credit score up to around 630. I tried to find a lender so I could refinance my mortgage, but they keep telling me they can't do anything for four years. I keep reading that if I have paid my mortgage & back arrears for 12 months I could refinance my mortgage, but I keep getting the run around. I filed for HARP and was turned down. Someone told me to try to get a FHA mortgage. If I've been paying my mortgage on time along with the back arrears and have my credit score up, why can't I find a Lender who will help me ? I have no other debt except my mortgage & back arrears. Any ideas or suggestions would be greatly appreciated. Also in Jan. 2019 I will be getting $ 932 from my wife's SSDI survivors benefits.

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4 Lawyer Answers
Leonard R. Boyer
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Answered
  • Bankruptcy Lawyer
  • Clifton, NJ
  • Licensed in New Jersey

A: You would need the Trustee and Court's permission to refinance the house will in Chapter 13 Bankruptcy. Hopefully you are represented by an experienced Bankruptcy attorney, otherwise you need to retain one.

1 user found this answer helpful

Karra Kingston
Karra Kingston
Answered
  • Bankruptcy Lawyer
  • Staten Island , NY

A: Hello,

You will have to get permission from the Bankruptcy Court in order to refinance. This is considered a “new debt”. While in a chapter 13 your usually not allowed to take on new debt without getting permission. Talk to your bankruptcy attorney!

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: You need permission from the court to refi while you are in a Chapter 13. With the Courts approval, you may be able to obtain refinancing without having to wait four years.

Michael David Siegel
Michael David Siegel
Answered
  • Bankruptcy Lawyer
  • New York, NY
  • Licensed in New Jersey

A: If you are still in Chapter 13 you are not going to be able to refinance. Once you complete your plan and the case closes, you may be able to do so. 630 is still a lower score.

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