Bad Credit Mortgages
Buying Out Your Chapter 13 Bankruptcy with a Mortgage Refinance
If you filed Chapter 13, you can eliminate your bankruptcy payment plan with a bankruptcy buyout. Of course, you’re going to need some cash. One of the easiest ways to come up with the money you need is with a Hawaii cash-out refinance.
Borrowing From Your Equity
A housing boom in the state of Hawaii caused home prices to skyrocket within the last few years. If you are a Hawaii homeowner, you may be sitting on a mound of cash that you never knew existed. A cash-out refinance loan will give you access to this equity and allow you to buyout your bankruptcy. To get an estimate in regards to how much equity you have in your home, you can use one of the many home value calculators that can be found online. For a more accurate figure, you can pay a professional to come appraise your home.
Loan Requirements
In most cases, if you want to get a Hawaii cash-out mortgage refinance to buy out your bankruptcy, you will need a credit score of at least 520. You must also have enough equity in the home to pay off your bankruptcy debts. If your credit score is below 520, you may want to give yourself a few months to work on rebuilding your credit prior to applying for the loan.
Additional Tips
After filing bankruptcy you may have a difficult time getting a traditional bank or mortgage lender to work with you. Your best bet will be to contact a qualified mortgage broker who has experience in getting Hawaii refinance loans for borrowers who have bankruptcy issues. A broker who is familiar with the sub-prime lending industry may be able to get you a better deal than you could come up with yourself. Be careful when shopping for a broker though. Hawaii does not have strict mortgage broker regulations in place at this time.
