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Can I refinance my 1st mortgage in a ch 13?


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Be careful about a cashout re-fi. Equity in your home is exempt but, cash isn't. The trustee may well grab it.

Someone in an open Chapter 13 with a prior Chapter 7 on their credit report is a longshot to get any sort of re-fi. If you do, the interest rate will be nosebleed.

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Thank you for the link :) I read it and I have a question. Would this form of help only apply to those who have conventional mortgages? My problem is that my mortgage lender (and servicer) is the USDA's Rural Housing department. Since they are part of the federal gov't, I'm not sure if there's anything I can do to get my loan restructured. To quote from the article in the link you provided:

"Under the proposed reform, the senators and Citi agreed that only mortgages entered into prior to its enactment would be eligible for the treatment. Homeowners would have to certify that they have tried to contact their lender before filing for bankruptcy. "

Now, two key things here... 1. I did contact RH (Rural Housing) prior to my BK. Matter of fact, my foreclosure was in the appeals process (initiated by me to get more time to deal with things) and I had already gone to the first round of hearings regarding my foreclosure. The Appeal Hearing Officer granted a Continuance on the basis that I was going to file the BK and she wanted proof of that. I supplied such proof, which caused a stay and no further action was taken to foreclose on my home.

And since I already own my home, I would be eligible for treatment because the supposed Act has not been passed yet, therefore making my mortgage PRIOR to the Act.

I'm just curious, again, if this Act, should it pass, will cover government backed mortgages as well. If so, then what can I expect as an outcome?

Currently, I have a 1% interest rate because I am considered "very low income". The loan is under the RD's 502 home loan program and I do have a portion of my mortgage subsidized. However, should I decide to sell my home, the total amount subsidized up to the date of settlement on the home, would in effect be taken out of any profit gained from the sale. The downside to having this subsidy is that the longer I remain on it, the higher the amount of subsidy I will have to pay back.

I can elaborate further if need be.

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