Can you refinance after paying off mortgage?
Yes, homeowners with paid-off properties who are interested in accessing home equity to pay for home improvements, debt consolidation, tuition or home repairs can leverage their equity through many of the same tools that mortgage-holding homeowners use. This includes home equity loans, HELOCs and cash-out refinances.
How long after discharge can I get a mortgage?
If you’ve gone through a Chapter 7 bankruptcy, you need to wait at least 4 years after a court discharges or dismisses your bankruptcy to qualify for a conventional loan. Government-backed mortgage loans are a bit more lenient. You need to wait 3 years after your bankruptcy’s dismissal or discharge to get a USDA loan.
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.
Can you refinance a mortgage after a chapter 13 discharge?
You can refinance your current mortgage after a Chapter 13 bankruptcy discharge, but getting approved for a new mortgage with decent terms takes planning and time. The refinancing lender you are applying to considers your bankruptcy when deciding whether to approve your application, and the bankruptcy may impact the offered interest rate.
Is it possible to refinance your mortgage after bankruptcy?
Even in bankruptcy, it is possible to retain your home. Refinancing the mortgage after the bankruptcy discharge may require seasoning and improved credit scores since refinances involve applying for a new loan.
Can a second mortgage be discharged after bankruptcy?
If you had a second mortgage before filing for bankruptcy, they most likely already perfected their lien on your house before the bankruptcy, probably around the time that you took out the second mortgage. If they didn’t, and then they try to perfect their lien after your bankruptcy, then they are violating the bankruptcy discharge.
