http://learn-it-fast.com Tue, 01 Mar 2011 09:04:37 +0000 hourly 1 http://wordpress.org/?v=3.0.1 http://learn-it-fast.com/2011/02/refinancing-during-bk-13/#comment-3 Consult Tue, 01 Mar 2011 09:04:37 +0000 http://learn-it-fast.com/?p=10#comment-3 You will need permission from the BK. trustee to consummate the loan (right to encumber); in IL you have to request the payoff via the trustee also and this can add 2-4 weeks onto processing if the BK. attorney is slow to file the motion. Be clear with the BK. atty. what you need and stay in constant contact with their office - I had one who was there to get the right to encumber and agreed to a continuance from the mortgage company's atty. and the loan was ready to close 2 days later. Make sure your mortgage and BK. payoffs are postdated far enough to be valid through your closing date. Order the payoff from the mortgage company's attorney (it is assumed the mortgage was delinquent and/or in foreclosure when the BK. was filed) and direct from the mortgage company. Follow up with status calls regularly to make sure everything is progressing; anybody dropping the ball can add 7-10 days onto processing as well. Be sure the both payoffs do not include any arrearage owed on the mortgage; if it is included with the lender's payoff, request the trustee to delete it from their payoff or vice-versa. You will need permission from the BK. trustee to consummate the loan (right to encumber); in IL you have to request the payoff via the trustee also and this can add 2-4 weeks onto processing if the BK. attorney is slow to file the motion. Be clear with the BK. atty. what you need and stay in constant contact with their office – I had one who was there to get the right to encumber and agreed to a continuance from the mortgage company’s atty. and the loan was ready to close 2 days later. Make sure your mortgage and BK. payoffs are postdated far enough to be valid through your closing date. Order the payoff from the mortgage company’s attorney (it is assumed the mortgage was delinquent and/or in foreclosure when the BK. was filed) and direct from the mortgage company. Follow up with status calls regularly to make sure everything is progressing; anybody dropping the ball can add 7-10 days onto processing as well. Be sure the both payoffs do not include any arrearage owed on the mortgage; if it is included with the lender’s payoff, request the trustee to delete it from their payoff or vice-versa.

]]> http://learn-it-fast.com/2011/02/refinancing-during-bk-13/#comment-2 Simk Sun, 27 Feb 2011 09:03:56 +0000 http://learn-it-fast.com/?p=10#comment-2 Word of advice -- trustee approval is needed regardless. Start that process as early as possible because it takes time. In Illinois, the atty. who filed the BK. has to motion the court for the payoff which also takes time. Kill 2 birds with 1 stone; request permission and the payoff and make sure you make the payoff good thru date long. The title company may not accept it if it is over 30 days at closing and that starts the headache all over again. Word of advice — trustee approval is needed regardless. Start that process as early as possible because it takes time. In Illinois, the atty. who filed the BK. has to motion the court for the payoff which also takes time. Kill 2 birds with 1 stone; request permission and the payoff and make sure you make the payoff good thru date long. The title company may not accept it if it is over 30 days at closing and that starts the headache all over again.

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