63 Weeks and counting....

iVillage Member
Registered: 10-01-2008
63 Weeks and counting....
Wed, 12-05-2012 - 4:11pm

G-Whiz the weeks are going by fast.  I broke down and made a call today that I have been thinking about for the last several months.  My girl friend told me that the mortgage company called her and ask her if she wanted to refi.  Unreal....RIGHT?  I have the same mortgage company, REGIONS.  She I got the direct phone number to the lady that worked with her.  I called her today and explained that we were in Chapter 13 Bankruptcy but our mortgage had been and is still presently being paid outside of the plan and ask if there was any tiny speck of hope that we could refinance at a lower rate.  Our present rate is 6.875%.  I explained that this would have to have the courts blessing, but was it possible for her to check into this.  She said she would make some calls and find out.  Hey....worth a try....RIGHT!  I understand that if our mortgage payment is lowered, we would have to increase our payments to the court over the remaining term of our payment plan.  BUT....I would gladly do that in order to obtain a much lower interest rate.  Also, my friend informed me she did not have to pay a penny out of pocket....unbelievable....she said it had something to do with the housing failure and the plan the president had handed down to mortgage companies.  I've heard a little about it, but sort of shut my ears because we were in bankrutpcy. 

Time will tell.....in the meantime...paws crossed. 

Now...the scary news...work is EXTREMELY slow.....worried that a pink slip could be lurking if things don't pick up soon.

iVillage Member
Registered: 10-01-2008
Tue, 12-11-2012 - 8:26am

Dee,  I'm not 100% sure of anything on a refinance of the home other than we were told in the court both times we were there that the Trustte has to give her Permission to do anything financial.  The mortgage has always been paid outside the trustee's court and has always been in our hands and even when DH lost his job(s) I made darn sure that was paid first & foremost.  I'll just have to wait and see what our mortgage company say.

Marie,  YES...my friend that has her mortgage at the same bank did the EXACT same thing as you.  Her rate was about 1% higher but her credit score was lower than mine.  She saved $300 a month but redid it for 30 yrs.  I have a feeling that I will be deferred to March 2014 before I can do anything.  The lady said she could definately help me then (when we are discharged) and that I will not have to wait the entire 7 yrs. as others at the credit union had told me.  So maybe the rates will stay lower for the next year.  Either way I not worried about this, it was a long shot and if something good happens....it happens. 

On a very postive note, DH is getting a small rate (cost of living) and the trustee will not have to be informed.  But he did qualify for a bonus again.  We are thinking that if my job holds up and I don't get laid off, that we will simply let the Trustee keep it and not try to fight for it this year.  My health is a little more stable than last year....even though I am home sick with a bad sore throat and fever for the last two days. 

All of you may think I'm stupid....but I just want the next year to fly by.  I know it will and I'm wishing away my life, but this burden will be lifted.  We have discussed at lenght what will will do.  A few home repairs and a needed piece of furniture, namely mattress and couch & recliner.  Our furniture must be at least 20 yrs. old and crappy.  But no hog wild spending for us.


iVillage Member
Registered: 12-31-2010
Sat, 12-08-2012 - 1:37pm

Norma -

We are doing our re-fi under the Mortage Affordability Act right now.  There are no closing costs and we don't have to have an appraisal.  We just got approved this week, so we should close by the end of the year.  We are going from 5.375, with 21 years left on a 30 year, to a 3.375 for 15 years.  We do have to escrow our taxes and insurance with the new loan, and the payment is going up $62 a month, but if we were to stay here and pay the full 15 years, it would save us $73,000!  On a $185,000 balance, that is a LOT.

Oh and we would be paid off by age 65, so no mortgage in our retirement years.

BUT it does not change the fact that I still do not like this house, and we will move in about 4 years. That said, we will still save at least $6k per year just in interest per year.

Back to YOUR change with the trustee, could you look back when you filed and check things like gasoline prices, utilties, taxes and show that to the trustee if you do a refi, showing them that other things went up in the meantime?  Or even send that in with your DH's bonus request? I would think that might have an impact and allow you to keep more of the bonus or take home pay?  But these things are never what a normal person would think, are they?


iVillage Member
Registered: 04-08-2008
Fri, 12-07-2012 - 7:34pm

If you end up with a refi, does that mean that the weeks would be decreased? Or would you be paying down your mortgage faster? Almost 7%!!! GULP! We have 2.5%.

If you lose your job and they lower your payments, does that mean you will take longer to pay off the bankruptcy obligation? Or does that matter?

Sorry for all the questions, I've never met anyone who had to deal with bankruptcy so I am very curious. But I am glad that it is there when and if you need it.

I can see the nervousness in your posts and the debt fatigue. Hang in there. You can do this. I'm kind of counting down with you as DH will finally complete his "growth to full fledge position" (and pay!)  around Mar2014. Then things will be better for us...at least I hope, you never know with the way things are going up every year.


iVillage Member
Registered: 10-01-2008
Thu, 12-06-2012 - 4:47pm

The payments with the Trustee are based upon income.  If income goes up they can ask you to pay more.  That's why we have to surrender bonuses that my husband gets (if we don't have a year like last year that was flooded with medical bills).  If the income goes down, I'll petition the Trustee to lower the payments until something comes along.

Community Leader
Registered: 08-25-2006
Thu, 12-06-2012 - 12:19pm

Hey, all you can do is ask, right?  If they say no, you are no worse off than you are now.  My philosophy anyways. 

How would your BK garnishment be affected if you lost your job?  It is based off of what you have after necessities are paid, is that correct?