“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
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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