“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



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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


It's nice to see second chances like this.  Hard work, patience and time can work.

Posted by Women of Westchester Working Together, Women helping Women get ahead (Women of Westchester Working Together) over 3 years ago

Honestly, I am not sure I understand your discussion.   I need to Google bk plan. 

Posted by Peter Mohylsky, SoWal Is HOME., Let me help you find your path to the beach. (PrimeSouth Properties) over 3 years ago

Sounds like a very tricky re-finance, Joe.  They've definitely selected the right broker for assistance.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 3 years ago

Joe: I know they are in good hands and if anyone can get them to the finish line, you certainly can.

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (ColdwellBanker SSK Realtors ~ 478.960.8055) over 3 years ago

Hi Joe.  What a bone head attorney.  Oops I am repeating myself

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) over 3 years ago

Good morning Joe.  Yeah, what Conrad said.  Just goes to show you because one has that piece of paper on the wall, they don't know everything.  

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty) over 3 years ago

I had someone call me with similar issues.  I have reached out to them but no answer as yet

Posted by Ed Silva, Central CT Real Estate Broker Serving all equally (RE/MAX Professionals, CT 203-206-0754 ) over 3 years ago

Wow, I have seen some crazy things with bankruptcies and I am amazed at what can be done with refinacing...I am sure you will get it to the finish line, Joe.

Posted by Ginny Gorman, Homes for Sale in North Kingstown RI and beyond (RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate) over 3 years ago

Yicks...Must have been that full moon that brought out "the best" in people this week !

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) over 3 years ago

Good morning Joe. The attorney needs another cup of coffeee to clear his brain! Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) over 3 years ago

Good morning Joe. I laughed out loud really when I heard that last question but glad the clients have enough money to clear those debts.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) over 3 years ago

We've had our share of other "professionals" who can destroy a deal. Glad all worked out with this one for all.

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Home and Condo Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) over 3 years ago

Joe Petrowsky you aren't really surprised by the attorney's question are you?

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) over 3 years ago

Joe, I had always thought it took years, but assisted a buyer this past year that had a chapter 13, and was finished one year ago.  

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc. - Denver Real Estate - 720-231-6373) over 3 years ago

Sounds like a tricky one, Joe, to have worked out. And I learned a long time ago that attorneys don't necessarily have all the answers (even though most of them think they do).

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage ) over 3 years ago

JOe, if anyone can help to complete this task...you can.

Posted by Rebecca Gaujot, Realtor®, Lewisburg WV, the go to agent for all real estate (Vision Quest Realty) over 3 years ago

Joe Petrowsky  Things are not always easy ...are they ?

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) over 3 years ago


Good to know . . . . as always thanks for sharing your insight.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) over 3 years ago

Joe I would have been surprised by the question as well if it came from anyone else but a Lawyer.  Nothing they do or asks surprises me any more.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 3 years ago

Tricky business is correct Joe. You are no quitter and truly care about the people.

Posted by Noah Seidenberg, Chicagoland and Suburbs (800) 858-7917 (Coldwell Banker) over 3 years ago

Hi Joe -- your persistence and knowledge certainly come in handy for your clients.   

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 over 3 years ago

Thank you very much, Joe, for sharing this story. It takes a skilled loan officer to handle these situations.

Posted by Roy Kelley (Realty Group Referrals) over 3 years ago