Is it possible to refinance our mortgage and 2nd equity loan after bankruptcy?

Financing a property after a BK requires that you wait 2 years from the discharge date and that you have reestablished credit.

FHA loans allow for a waiting period of less than 1-year after a bankruptcy if you have documentable extenuating circumstances. However, you are still limited to a maximum loan-to-value of 97.75% of the current appraised value, so based on your current loan balances & estimated home value, a refinance does not appear to be a viable alternative currently. You may want to contact your current lender(s) to try for a loan modification instead. Best of luck!

As a general rule, you would need to let at least 2 years pass after a chapter 7 bankruptcy is discharged. The bigger issue is that the balance on your first is near 100% of the value of the property. This means that there is virtually no equity to support the second mortgage, meaning that even if you were past the time limit, they may be unwilling to subordinate their position. Now would be a good time to try to negotiate with the second mortgage lender to reduce the principal balance of their loan. You may be able to do this yourself or you may need to hire an attorney with this expertise. Good luck

I would suggest that you look at naca.com - they're a non-profit crusading organization that can help you get a 2% rate for the life of your mortgage as well as reduced payments! When you are working with them, it's like being under an umbrella of protection - the lenders are all afraid of NACA - they're happy to hand out the name and address of the CEO of BOA, JP Morgan, Chase...LOL

Hi, Diana.Thanks for your post. Love your candor too! I think this has already been well answered, but I'll weigh in here too.The BK will likely cause an issue with refinancing at this point because it's still recent. FHA tends to be the most flexible and they have a 2 year waiting period from the date of bankruptcy discharge. It appears you filed almost a year ago so this is still pretty fresh.The second obstacle is the LTV/CLTV. It appears you're underwater there so if you can overcome the BK, the value of your home in relation to what you owe could be an issue.I see two possibilities here. Option # 1 is to attempt to do something on your own with both your existing lenders. You can apply for a loan modification through them. Clearly you've had a hardship so it may be a slam dunk. Option # 2 would be to work with NACA as mentioned below. They're a radical and disorganized group and you'll have to agree to help them support their cause a few times a year (putting signs in your yard, stuffing envelopes, attending rallies, etc.), but they may be able to get a loan mod done for you if you can't on your own.Hope that helps and good luck!Scott781-258-1293