Homeowners in Tennessee might be allowed to refinance their mortgages after emerging from Chapter 7 or 13 bankruptcy. This assumes that those who file for Chapter 7 bankruptcy are allowed to keep their home during the liquidation process. The type of bankruptcy that a person files for as well as the type of loan a person has could determine when it could be possible to refinance an existing mortgage.
For instance, a person who goes through Chapter 7 bankruptcy and has an FHA or VA loan might be allowed to refinance a home loan within a year of the discharge date. Those who have a conventional mortgage might have to wait up to four years before they are able to get a new home loan. Individuals who filed for Chapter 13 bankruptcy must typically make payments for at least a year before refinancing an FHA loan.
Those who have VA loans can refinance their mortgages a year after filing for a reorganization bankruptcy. Individuals who have conventional mortgages can refinance a loan two to four years after their cases are discharged or dismissed. A person who has filed for bankruptcy multiple times over a period of seven years must wait five years before refinancing a mortgage. This is true regardless of the type of bankruptcy they filed for or what type of loan they have.
Individuals who are planning on filing for bankruptcy may be able to do so without losing their homes. In some cases, it may be possible to keep some or all of the equity in the home even if it is sold. An attorney may be able to talk more about how a bankruptcy might impact a person’s credit and ability to refinance a mortgage at some point in the future.