dcsimg
We research, you save.
Got Questions On Rates? (855) 610-2972

Underwater after a bankruptcy 3.5 years ago. Can I refinance?

HSH.com

Q: Can I find someone to refinance? We filed bankruptcy 3.5 years ago after a failed business. We were never late and never missed a payment on our mortgages (1st & 2nd) or our cars and did not include these in the filing. Since the filing we have paid off one of the two cars. We have an adjustable rate first mortgage that is set to adjust in 2013 - currently it is at about 6%. The second mortgage is fixed at 9.9%. Looking at both mortgages, we are slightly under water. Since the filing we have not taken out any credit at all. Is there any hope of re-financing?

A: The bad news is that the combination of your issues - being underwater and having a fairly recent bankruptcy - means finding new financing will be next to impossible. Fannie and Freddie require "credit recovery" periods after bankruptcy of up to four years, and being underwater leaves fewer options outside of a Home Affordable Refinance -- available only if your loan is owned by Fannie or Freddie in the first place. You can check with your existing first mortgage lender to see if help might be available, but it does seem unlikely at the present moment.

More help from HSH.com

  • Mortgage Rates Radar 05/24/2016: Mortgage rates see upward bump

    HSH.com releases its latest Weekly Mortgage Rates Radar showing a small increase in popular mortgage rates during the seven-day period ending May 24, as minutes from the most recent Federal Reserve meeting suggests that a change in short-term rates may come sooner than later. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).
  • The salary you must earn to buy a home in 27 metros

    Here’s how much salary you would need to earn in order to afford the median-priced home in your city.
  • Mortgage Rates Radar 05/17/2016: Mortgage rates flat

    HSH.com releases its latest Weekly Mortgage Rates Radar showing virtually no movement in popular mortgage rates during the seven-day period ending May 17, as financial markets are mostly directionless at the moment. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).
  • Mortgage Rates Radar 05/10/2016: Mortgage rates wander downward

    HSH.com releases its latest Weekly Mortgage Rates Radar showing a modest decline in mortgage rates in the seven-day period ending May 10, as financial markets settle in to a quiet period with little economic data to consider. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).
  • Mortgage Rates Radar 05/03/2016: Mortgage rates mostly steady this week

    HSH.com releases its latest Weekly Mortgage Rates Radar showing almost no change but perhaps, the beginning of another decline in popular mortgage rates during the seven-day period ending May 3, as the financial markets turn their focus from the Federal Reserve to incoming data. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).