Chapter 13 and mortgage loan

[Fowlel4]

Hello,
My Chapter 13 discharged in March but is still not closed. Apparently, they are still waiting for checks to clear. I have applied for a home loan and was approved. I was supposed to close this Tuesday. It actually had been going so smoothly until the title. The dang title is messing things up. The sellers title company wants me to provide a letter from the Trustee allowing me to incur debt. The problem is that the Trustee says that this is not necessary/possible because the case is discharged. He was really annoyed by the question. My lawyer said the same. My lender said the same but the sellers title company does not agree. My lender works a lot with Chapter 13 discharges and said that some title companies just don't know the rules. I'm told that we will work through this but it's a little depressing and a lot embarrassing. I was a strong approval because somehow I came out of bankruptcy and was quickly approved for credit cards with cil of 19600. My credit score since March jumped to a FICO middle score of 690 and I had 20% down. Had no idea it would be the title that would destroy the loan. No question, just me whining.

[Fowlel4]

And now my title company says they need the letter after previously clearing it. The seller is furious and says that she will sue me. The Trustee says no letter is needed, the closing is administrative only and my attorney isn't responding to me at all. I spoke to her assistant but my attorney hasn't reached out at all. Probably because she has already completed the bankruptcy yet it isn't closed. I am now back to the original closing date of Friday but there is no way I will have this by Friday. I'm embarrassed and over it. I should have applied before I was discharged. That's my advice to all. But you will likely need a score of 620, I didn't find any bank that allowed the minimum score of 580 allowed by FHA.

[Liberty73]

I work in the title industry. So I can see why there is a requirement for this - the title company is insuring that there are no outstanding liens or anything that can come back and affect your lender’s lien position in the future. If something were to come up, the title company could be on the hook if the lender filed a claim. It’s frustrating, I know, but each title company has their own underwriting guidelines and it sounds like this one is particularly strict. They made have had title claims or issues with bankruptcy before and adjusted their underwriting guidelines. Perhaps the trustee can draft a letter explaining the case is discharged and they do not need to provide permission for you to incur debt?