How soon can I buy another house during a Chapter 13 (three months in)?

[chargers777]

Hello all.

I filed several months ago, and I am thinking of buying another home when the down payment gets all set up (I will be getting money from a sale of a house a few months before I filed). My attorney and trustee know about the money, but I will net enough to put down about 15% for another house.

So, my question is, how long will it take for me to qualify to buy a house?

Do I need permission to buy another property while in a Chapter 13?

Or

Is it best to just wait until I get a discharge in another 33 months from now?

Just exploring options.

I don't need the house, but I would like to set up investments for retirement. I have another 7-14 years before I actually retire in my late 50s/early 60s.

Thank you.

[justbroke]

It's at least one year in with 12 months of solid payment performance to the Trustee. It will also require Trustee and court approval. There are a couple of companies that do the Chapter 13 mortgages, but your scores will need to be good (620+ middle form the FICO 5/4/2 varieties), and you need to find that company willing to do the mortgage. You could get an FHA loan, but Conventional/Jumbo will likely be out of reach.

While it can be done, I've only read about one of them here on BKForum.

[chargers777]

Thanks for the feedback.

I figured it would be a royal pain in the BLANK.

Probably best to just wait until I get a discharge and my credit goes back to 750.

Seems like this would just open up a can of worms as well, and that is definitely not worth it.

[shipo]

Thanks for the feedback.

I figured it would be a royal pain in the BLANK.

Probably best to just wait until I get a discharge and my credit goes back to 750.

Seems like this would just open up a can of worms as well, and that is definitely not worth it.

Rule of thumb for 99% of all Chapter 13 participants: lie low, don't rock the boat; the less the Trustee has reason to focus on you and your case the better it is for you.

[chargers777]

Absolutely shipo.

Thank you for your input.

[flashoflight]

Hello all.

I filed several months ago, and I am thinking of buying another home when the down payment gets all set up (I will be getting money from a sale of a house a few months before I filed). My attorney and trustee know about the money, but I will net enough to put down about 15% for another house.

So, my question is, how long will it take for me to qualify to buy a house?

Do I need permission to buy another property while in a Chapter 13?

Or

Is it best to just wait until I get a discharge in another 33 months from now?

Just exploring options.

I don't need the house, but I would like to set up investments for retirement. I have another 7-14 years before I actually retire in my late 50s/early 60s.

Thank you.

I refinanced a mortgage, but the process is similar. You need 12 months of ontime post-petition payments to the trustee and all post-petition creditors. The trustee will not approve a mortgage/house purchase much bigger than the current housing payment unless you are in a 100% case. Monthly mortgage payments are a lot higher than 2021 and prices haven't dropped nowhere near enough to compensate for that. With a below median case and you're already boxed in with a low housing payment, I don't see how you can qualify for any home purchase unless it's super cheap.