Financing Mortgage Under Chapter 13 Bankruptcy
Is there a question in your mind that whether you can mortgage your property in chapter 13 bankruptcy ? Here goes the answer for you:-
A homeowner is eligible to refinance his mortgage loan after a yearly payments in the bankruptcy plan. A debtor is eligible to mortgage his property and can pay to the creditor in installments for a time span of three to five years.
In fact refinancing the mortgage or keeping your property on mortgage may help the debtor to get rid of the bankruptcy in a very subtle and fast manner.
Following points should be kept in the slot before mortgaging or tying to mortgage:-
Goals should be determined before refinancing. You are supposed to pay off your debt by mortgaging your property before bankruptcy or during or after bankruptcy.
You know another important consideration which should be kept in mind is before you mortgage or try to mortgage under chapter 13 of bankruptcy you should consult your attorney, for further and detailed recommendation.
He is the only eligible person who can who can guide you through procedures for mortgaging with proper details.
During or prior to bankruptcy you are supposed to look in for banks which would mortgage your tangible property i’e. your home to take you out of debt with prior commitments.
You are supposed to get approval of the Bankruptcy trustee and you are supposed to see whether you get that power to mortgage your property. The trustee will review the details and get back to you accordingly.
You know another important parameter which creeps in is refinancing the mortgage can never be an option for the debtor under chapter 13 of bankruptcy.
You know you have an option of staying in the chapter 13 of bankruptcy known as re-organisation bankruptcy where in an individual can requires to bring the loan and repay it in a period of 3 to 5 years.The lender or creditor will not be able to reject the loan payments when you charge this type of bankruptcy.
You know financing mortgage under chapter 13 bankruptcy is usually possible but may not be the best call by you. It will be worthwhile for you to call a mortgage broker to inquire and assist you regarding a mortgage in chapter 13 bankruptcy, because the private lenders will want a higher interest rate from you. The best and most appropriate thing you can do is to complete the chapter 13 process as soon as possible and then make inquiries about your lender and proceed further with your attorney about this issue.
Many creditors as far as we can count numbers would still consider a loan modification even while the borrower is inside and an active member under the chapter 13 of bankruptcy. The lenders or the creditors see themselves getting paid in 12 months in equal installments of the payments.
So to conclude it I still a dicey question whether you should refinance mortgage in chapter 13 bankruptcy or not, the call is yours but take help from your attorney.!! Call us for more information : 1-844-ERASE BILLS (TOLL FREE)