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Can I refinance after Bankruptcy?

I filed bankruptcy bank in Feb 2010 and "supposedly" re-affirned" my home. However, papers weren't signed, so all the payments I have made since them have not been "helping" my credit score. I make $37,500 per year with and additional $48,00/yr for child support. I owe about $124,000 on my home and it's 5 years old. I purchased it for $130,000 and if I hade to guess, homes similar to mine are $135,000-$140,000. I would like to refinace but don't know if anyone would qualify me for a loan better than the 6 1/8% that I currently have. I just purchased a vehicle and my payments are $389/mo and have a $500 limit credit card, that I've had for 4 months now and the minimum payment is $25. Any chance of a refinance? I think they said my credit score was 577. Thanks in advance for you time! by srmceo_432_400 from Berea, Kentucky. Jan 29th 2012 Reply


Brian Curl (brianleecurl)
#9 ranked lender in Kentucky - 22 contributions

Is it a Ch7 or Ch13? What month/year was it discharged or dismissed?

Jan 29th 2012
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Chap 7 and it was dismissed in Feb 2010, sorry, I know I said I filed in February but I meant it was dismissed in February 2010. Not 100% sure on the credit score, It could have been 540....I honestly can't remember and was surprised to get the auto loan at what I thought was a resonable rate due to the bankruptcy.thanks!

Jan 29th 2012
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Joe Metzler (JoeMetzler)
#18 ranked lender in Minnesota - 3,981 contributions

It is not a mistake. When you file bankruptcy, your home loan stops reporting to the credit bureau. Contact a local non-bank LICENSED Loan Officer. Let them review your situation and qualifications. Your credit score and how recent the bankruptcy was is going to make things difficult if not impossible for the short-term.

Jan 30th 2012
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

I was just in your area over the weekend, well I was in Richmond. I am from there and was visiting my Aunt in the hospital. Anyway, it sounds like you might be able to qualify. You need to find a mortgage broker that can go down to a 540 credit score. I can but not in KY. All the best! Michelle Dema 201-962-3555

Jan 30th 2012
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#136 ranked lender in Florida - 796 contributions

Hi, not going to be easy but possible, you will need to find a mortgage broker that can go down to a 540 credit score, and do loans in KY. Good luck

Jan 30th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Hey Berea.. you have a complicated situation, and information is missing to properly answer your question.. If you have an FHA loan, there are lenders out there that will go as low as 500 credit scores. The guidelines are very stringent, however there is a loan product for you... if you have a conventional loan, you will have to wait till your scores improve... Best advice I can give you is to contact a local mortgage broker, not a bank and apply with them... they can look at your complete profile and all your paperwork and guide you to the right lender for your particular scenario.. WilliamAcres.com

Jan 30th 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

With a fairly new credit card and a new auto loan, your score should be building for you. You must first get past the two year mark for you to be FHA eligible. Have you looked at your credit report lately? Many times the reasons scores stay low after a BK is too many items are still being reported incorrectly. Contact a local mortgage Banker/broker. They will help you determine what you need to do quickly to get your scores where they need to be to qualify. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Jan 30th 2012
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Thank you all for the great information. I currently have a Freddie Mac loan, not a FHA.Since I just obtained these two new loans, Would it be safe to say check again in about 6 months?And I just checked my paperwork and it was 577 and that was about 3 weeks ago.

Jan 30th 2012
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looks like your on the road to real life, you are building credit already, your situation is simuliar to my own, mine is so much more complicated tho, i cant find help at all, or any answers tho, i am now called a widow, paying on a loan in my dead husbands name, go figure, he is dead and i build his credit, while mine is in the toilet. deed is in my name, loan in his, cant find a mortgage company to help, and the current company keeps blowing me off, i cant even find an attorney to help, everybody runs when i try to explain in detail the situation, i have a home worth atleast 160-180, 103 owed, apr at the roof 7.85% just finished my chapter 13, my score 640, but i had great credit before i filed the bankruptcy, of which was only filed because my husband died and time between situations and payments got messed up and nobody would help me, so much to complete my story, anyway if you do find help maybe they could help me also.

Apr 16th 2013
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