Can a mortgage that was discharged in bankruptcy be refinanced?
Can a mortgage that was discharged in bankruptcy be refinanced?
What Wells Fargo told you is partially right, and partially wrong. If the only issue is that you did not reaffirm the home loan in your bankruptcy, you will be able to refinance your loan with a different lender. Your lawyer was not remiss in advising you not to try to reaffirm the mortgage.
How long does it take to refinance after Chapter 7 bankruptcy?
If you’ve had more than one bankruptcy — Chapter 7 or Chapter 13 — over the last seven years, there’s a five-year waiting period to refinance your mortgage or qualify for any type of home loan. Once you get through your respective waiting period, the qualifications for a home loan are the same as anyone else.
Why did I not qualify for refinancing my mortgage?
Even those who opted for traditional fixed-rate mortgages may have sapped their home equity by cash-out refinancing repeatedly. Regardless of how, many of these homeowners found that they didn’t qualify for a traditional refinance thanks to their inflated LTV.
Can a discharged mortgage be refinanced by Wells Fargo?
When you refinance a discharged mortgage loan with the same lender who currently holds the mortgage, the proceeds of the refinance go back to that lender to repay the loan balance. This violates the bankruptcy discharge and that’s why Wells Fargo won’t refinance your mortgage.
What Wells Fargo told you is partially right, and partially wrong. If the only issue is that you did not reaffirm the home loan in your bankruptcy, you will be able to refinance your loan with a different lender. Your lawyer was not remiss in advising you not to try to reaffirm the mortgage.
If you’ve had more than one bankruptcy — Chapter 7 or Chapter 13 — over the last seven years, there’s a five-year waiting period to refinance your mortgage or qualify for any type of home loan. Once you get through your respective waiting period, the qualifications for a home loan are the same as anyone else.
Even those who opted for traditional fixed-rate mortgages may have sapped their home equity by cash-out refinancing repeatedly. Regardless of how, many of these homeowners found that they didn’t qualify for a traditional refinance thanks to their inflated LTV.
When you refinance a discharged mortgage loan with the same lender who currently holds the mortgage, the proceeds of the refinance go back to that lender to repay the loan balance. This violates the bankruptcy discharge and that’s why Wells Fargo won’t refinance your mortgage.