Can I refinance after filing for bankruptcy? 15 Answers as of June 26, 2013In April 2010, I filed for Ch7 bankruptcy and was discharged on July 2010. I included our 2 homes, 1 of which was already foreclosed. The other property has a sale date of Dec 21 2010. My husband and I are wondering if we could still try to modify it even I already included it in my bankruptcy and did not reaffirm it. My husband didn't file with me so can he still try to work with the bank?
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
Yes at higher rate.
Answer Applies to: California
Guerrieri & Cox | Michael A. Cox
I have worked on several modifications after bankruptcy. You should contact the loss mitigation department for the mortgage company (or its servicer) to find out what workout options are available to you. From your question, it appears that the property may have sold in December of 2010. Ordinarily, there are few options available to you after a foreclosure sale. However, I have seen a lot of properties not sell at the foreclosure sale and you should still see whether any options are available to you with the mortgage company's loss mitigation department.
Answer Applies to: Ohio
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
You can certainly try to refinance but most banks simply won't refinance when there isn't a reaffirmation agreement on file.
Answer Applies to: Indiana
Financial Relief Law Center | Mark Alonso
If you included your mortgage's in the ch. 7 bankruptcy and then lost one property but are trying to hold on to the other, the mortgage debt for the property you lost is discharged and you are no longer liable for that debt as the property has also been lost. The debt on the house that you still have is discharged against you personally, but the lien still exists. If you cannot pay your mortgage payments, then the lender has the right to enforce the lien against the property (foreclosing on your house) even though they can't come after you personally on the mortgage. Reaffirming the debt means you would accept personal liability on the mortgage. Sometimes lenders will ask you to reaffirm the debt /mortgage because they believe that shows them good faith on your part that you are serious about keeping the house/mortgage going forward. However, just because the lender asks you to do this, doesn't necessarily mean that the court would approve it, and sometimes it is not in your best interest to do so because of the acceptance of personal liability on the debt. To answer your question, you can still try and see if the lender will work with you on a loan modification or workout solution to cure the default and then get you into an affordable payment going forward. It may be the case that they will not allow it since you did not reaffirm, but it is worth a shot if you truly want to keep your house. I would recommend speaking with an experienced attorney who knows loan workouts well and can do an initial assessment to see if the lender may be willing to entertain a solution for you despite not reaffirming. If you have no equity in your property and have an ability to afford the loan if modified, then may be in a good place to try and save the house.
Answer Applies to: California
The Law Offices of Steven Grace | Steven Grace
Yes. Supplemental directive 10-2 states: "Borrowers who have received a Chapter 7 bankruptcy discharge in a case involving the first lien mortgage who did not reaffirm the mortgage debt under applicable law are eligible for HAMP." Of course, you must qualify for HAMP on all other grounds.
Answer Applies to: Illinois
Ashman Law Office | Glen Edward Ashman
Your question makes no sense. The home that was already foreclosed is gone. You don't own it. There's nothing to negotiate. And since the other home was sold 7 months ago, same answer. You have two homes gone and none left. You can't refinance homes after they are foreclosed.
Answer Applies to: Georgia