We are in the process of the last payment on our Chapter 13 and I have been studying everything I can read regarding the Back to Work Program. So many things are written regarding how long you have to wait after you are discharged! Confusing! Some FHA Mortgage sites say 1 year after discharge. I did find this on the HUD FHA site guidelines that FHA lenders are supposed to follow. I am also being told that you need to go with a direct FHA lender for this program, not an FHA allowed lender. Per HUD FHA site:
Chapter 13 Bankruptcy
The lender must verify and document that
• the Chapter 13 bankruptcy was discharged prior to loan application and all required bankruptcy payments were made on time, or
• a minimum of 12 months of the pay-out period under the bankruptcy has elapsed and all required bankruptcy payments were made on time, and
• the bankruptcy was the result of an Economic Event
If the bankruptcy was not discharged prior to loan application, the borrower must receive written permission from the Bankruptcy Court to enter into the mortgage transaction.
Has anyone successfully completed this FHA program? Hopefully I will be one of them
Chapter 13 Bankruptcy
The lender must verify and document that
• the Chapter 13 bankruptcy was discharged prior to loan application and all required bankruptcy payments were made on time, or
• a minimum of 12 months of the pay-out period under the bankruptcy has elapsed and all required bankruptcy payments were made on time, and
• the bankruptcy was the result of an Economic Event
If the bankruptcy was not discharged prior to loan application, the borrower must receive written permission from the Bankruptcy Court to enter into the mortgage transaction.
Has anyone successfully completed this FHA program? Hopefully I will be one of them
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