Debt and Insolvency Advice

Bankruptcy Refinance
Can I still refinance if I declare chapter 13 bankruptcy ?

I have a 420 fico credit score, but I am hoping that after the bankruptcy my score will go up and maybe then I can get a better
rate. Does this sound reasonable?

Yes, you can still refinance even if your in bankruptcy.
Many times this is part of the plan people inform the Trustee
about. Depending on your state however,you may need to get
the trustee and/or judge’s permission.Just make sure you use
a mortgage broker and not a bank,as most banks won’t do it.
I have refered some of my clients to http://fico400.com/
so far with positive results.

Be prepared! their rates with a 400 score are little higher
than bank rates but it may be worth to save your home and pay off your debt and after say 1 year of good payments you can refinance to a better rate. Best of Luck!!

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Interested in trying to get a loan modification after filing for bankruptcy? The nation’s current economic troubles have led many people to consider desperate measures to get out of debt. For many families, being able to keep their home after a bankruptcy filing can be an important and frightening worry. Read on for how to get a mortgage loan modified down to a livable rate even after going bankrupt.

Most Banks Want To Work With People

In the past, when a homeowner was failing to make payments on a home going into foreclosure was a good way for a bank to recover most or all of the home’s loan. This is no longer the case. Current housing market struggles have left banks with a glut of foreclosed homes that are no longer worth anything near what a homeowner originally paid. This can leave a bank with a large unpaid mortgage and no hope of seeing more than a small percentage of that money returned.

Contact The Bank To Work Something Out

Bankruptcy may have temporarily stopped foreclosure proceedings, but when the mortgage amount can’t be paid they will start up again with even more legal fees eventually. Be proactive and contact the bank to see if a modification that works for both the homeowner and the lender can be worked out. Frequently, the bank can discount quite a bit of the interest on a home loan and work out a new agreement that sets payments at a low fixed rate someone in financial distress actually has a hope of paying.

What About The Government Modification Program?

It may be more difficult, though not impossible, to get into one of the government stimulus programs for getting a mortgage loan refinanced after bankruptcy. The program specifically allows people who filed for Chapter 7 bankruptcy to obtain this help, even if the mortgage is not one of the loans being affirmed. While qualifying for the help with Chapter 13 may be more difficult, it is possible and worth applying for. With the government program, a homeowner will be able to pay off their mortgage with payments that stay at 31% of their gross monthly income.

Going bankrupt does not have to mean loosing a home to foreclosure. A little bit of persistence and a willingness to fill out applications and talk to the bank is frequently enough to help a homeowner stay in their home and make it affordable again.

NOTE: By researching and comparing the best loan modification companies in the market, you will determine the one that meets your very specific financial situation.

Hector Milla runs the Best Mortgage Loan Modification website – where you can apply for a quick home mortgage loan modification to stop foreclosure.