“Refinancing with a Chapter 13 Bankruptcy in Place”

“Refinancing with a Chapter 13 Bankruptcy in Place”

 

 

This type of refinancing can be tricky business. It can be a challenge for attorneys as well.

 

I’m in the process of doing a refinance and the client has been making payments on the BK plan for 2 years. There are two existing mortgages and payments on the mortgages and the plan have been paid perfectly. There is not enough equity to pay off the mortgages and the remaining balance on the plan.

 

When the title work was done it turned out that there were three additional liens. The attorney that was representing the client wanted to know if the liens can be left in place and a new mortgage go after these liens. Are you serious? I can’t believe I was asked the question, but I’ve learned not to be totally shocked.

 

Fortunately the clients will have the funds to pay off these obligations prior to closing, but if that was not the case the transaction could not have happened.

 

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Comment balloon 22 commentsJoe Petrowsky • January 22 2016 12:23PM
“Refinancing with a Chapter 13 Bankruptcy in Place”
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“Refinancing with a Chapter 13 Bankruptcy in Place” This type of refinancing can be tricky business. It can be a challenge for attorneys as well. I’m in the process of doing a refinance and the client has been making payments on the BK plan… more
“Commercial Real Estate Brokers are an Import Source of Referrals”
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“Commercial Real Estate Brokers are an Import Source of Referrals” Over the years I have interacted with many in the real estate industry that have referred clients that need to refinance their residential properties for one reason or another… more
“Daughter is Referring Her Dad”
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“Daughter is Referring Her Dad” He isn't getting a response from the mortgage rep at the bank. Supposedly they were told $124k if Carol cleaned up 3 items on her credit report. Allegedly she has taken care of one (Sears card she never opened)… more
“Nothing Beats Repeat Business”
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“Nothing Beats Repeat Business” Good morning Joe, I hope you and your family had a wonderful Holiday, we have found a property which we would like to put an offer on in Westbrook and it shouldn’t be a surprise that we will work with you… more
“Should We Add On or Buy Another Home? ”
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“Should We Add On or Buy Another Home? ” What can we do? Should we go through the process of trying to refinance? Keri and I really like the location. If I can get refinanced and get an addition on our current home I would be happy to stay. I… more
“Some in Our Industry Make Us All Look Bad”
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“Some in Our Industry Make Us All Look Bad” It is frustrating for any of us in the mortgage business that does a good job and is not willing to give our clients advice that is going to put someone in a bad place. This was one of those cases. … more
“Will the Value Come in High Enough? ”
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“Will the Value Come in High Enough? ” Hi joe. Any word for us?? I'm making myself so nervous and sick waiting. Thank you In many areas of Connecticut there are still many homes that are upside down or have very little equity. These folks are… more
“Home Inspection has 21 Issues”
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“Home Inspection has 21 Issues” After speaking to the buyer and the selling agent, the seller (bank) is not willing to repair anything. I recommended that we change from a FHA loan to a FHA 203 K loan in order to handle the repairs. I… more
“Should I Ask for Part of the Commission? ”
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“Should I Ask for Part of the Commission? ” Joe, Ok, good to know! There are so many damn details it is so helpful to have experts to advise throughout. I wish we were getting good advice from our agent. Thank you so much! After I got a… more
“Many are not Aware of What is on their Credit Report
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“Many are not Aware of What is on their Credit Repo rt " Joe, The Credence Resource that you have * on my report has been resolved for a long time now, will find paid receipt and not sure why they are reporting to the three bureaus each… more