Chapter 13 Payoff Process Estimated Completion Time: 35 - 45 days The Chapter 13 Payoff process works similarly to a regular mortgage refinance, but there are a lot more variables, parties involved, and problems that can arise. That's why it is important to work with an expert who specializes in doing these types of loans!

Step 1 | Get Pre-qualified

Before the process begins, we need to collect some the major key points of your situation to assess if you are able to get qualified or not. You can do this online using our Chapter 13 Refinance Application.

	Worried about not qualifying? We can help you out!
	If after reviewing your situation you are not currently qualified, we will give you a Personal Mortgage Plan to show you how you can get qualified as soon as possible, working with attorneys, credit repair programs and specialized lending instutions. Either way, you cannot lose working with us!

 

Step 2 | Collect Documentation

After you have been pre-qualified, you will be required to provide documentation and other information for underwriting to provide an approval on the loan. Here is a list on what most clients need to provide. However, after speaking with your mortgage consultant, you will be given an exact list of what is needed.

• Income Documentation - 2005 & 2006 W2s, 30 days paystubs, Bank Statements (if needed)
• Copy of Chapter 13 Bankruptcy Schedules A - F
• Contact Information for Trustee and Bankruptcy Attorney
• Trustee Payoff Request and Trustee Payment History
• Copy of latest mortgage stub
• Signed Disclosures

 

Step 3 | Processing

While we are collecting the above documents from you, your loan will go into processing and the following will take place:

• Appraisal
  • After we have estimated your property value, an appraisal will be ordered that you will pay for, directly to the appraiser. A full appraisal runs anywhere between $350 to $495 depending on location, state, and size of home.
    
    
• Court Permission - Important!
  • Most jurisdictions require you to get permission from the court before you can proceed with paying off your Chapter 13. Your attorney will file a request with the judge. This process can take up to 30 days or more to complete, so it's important to get started on this right away. When you call your trustee to get a payoff amount and payment history, they will also let you know if you need to get court permission.
    
    
• Order Payoffs
  • Processing will order payoffs of everrything that will be paid off through your refinance
    • Current mortgages
    • Trustee/Chapter 13 Bankruptcy (you will request that)
    • Credit Cards, Auto Loans, other debt outside of Chapter 13
    • Tax liens
      
      
• Verifications
  • Processing will verify the following:
    • Employment
    • Mortgage Payment History
    • Trustee Payment History
    • Account Balances (if applicable)
• Initial Document Signing
  • Midway through the loan process, you will receive an intial loan application packet and disclosures. You need to sign and fax back to us. These are not the final loan documents.
  
  
  
• Settlement Services
  • Title will be opened, tax information collected, and closing services will be arranged.

 

Step 4 | Closing

You will sign final loan documents. Closing will either take place at your local attorney's office, title company, or we will have a mobile notary come to you.

 

Step 5 | Funding

Approximately 3 days after you have signed final loan documents, your loan will be funded and you will have paid off your Chapter 13 Bankruptcy, having just one new mortgage program.

 

Life After Bankruptcy

In the proceeding weeks, you will receive your discharge letter showing your Chapter 13 Bankruptcy has been discharged! Once discharged, you will be able to improve your credit scores with new lines of credit, on-time payments, and paying your new mortgage on time. The further you get from your discharge date, along with on-time creditor payments, the higher your credit score will go!

Ready to Get Started? Find out what your options are. Apply online using our Chapter 13 Refinance Application.