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Financial Q&A: Postbankruptcy mortgage, but stuck at a high rate

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Q: My husband and I purchased our home in 2005. We have an adjustable-rate mortgage. We later filed for Chapter 13 bankruptcy to keep from losing our home. We have been able to keep up with the payments since filing. My question is: Are we going to receive any relief, or are we pretty much stuck with the high adjustable rate?

D.M., Louisville, Ky.

A: Barry Taylor, a certified financial planner in San Francisco, believes you most will have to live with the terms of the agreement. He recommends that you talk with a bankruptcy attorney; maybe the one that handled your original case.

Meanwhile, have you contacted the mortgage company with your concerns? With the whole subprime mortgage mess, they're busy with people who are behind on payments, Mr. Taylor says. But most lenders have loan workout departments that try to work with people to find solutions for people having problems.

Q: I'm making a house loan to my child. Should this be in the trust? Should IRA funds be in the name of the trust? Would it be OK to just name the trust as the beneficiary for mutual funds? A CD is not in the trust because FDIC regulations seemed unclear whether the trust would be considered a single entity, allowing only $250,000 coverage; if my two children are named as beneficiaries, coverage goes up. Would probate be required for the CD?


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