Anyone bought a house during Chapt 13

[Carter]

I have been reading about the House Reform Bill Congress just passed. I lost my house to foreclosure after having a subprime mortgage 2 years ago. Then because of the foreclosure the 2nd trust lender came after me for the money so thats when I filed chapter 13 in November of 2008. Reading all about this Bill that congress has passed makes me a little hopeful that maybe some day I can buy a home again. Is there anyone out there who has been able to buy a home while in a chapter 13?? (I do realize that the trustee would have to approve anything like this first, but I just want to know if anyone has been able to find a lender--or know what the FHA guidelines are for buying a home after foreclosure and then during a chapter 13). By the way, I am in a 5 year plan and I am coming up on my first completed year this coming November 2008.

[BKParalegal]

FHA guidelines state 2 years after discharge of BK. Since there isn't a subprime market, it is highly unlikely to get qualified in CH. 13, unless your FICO score is around 720 and you have a 20% down payment. I have seen builders carry loans for a couple of years now, due to the inability to get customers qualified but those deals vary by builder.


Good Luck

[car67]

I checked recently as well but I found your fico must be over 580 and trustee approval is needed but this was for a refi out of arm to fixed. I dont think you will be able to buy a home in bankruptcy
in this economy. I think the goal is to keep current home owners funded and not
foreclosed versus outright new risky loans if that make sense.... Now if you come in with
a huge down then the bankruptcy court will say HMMMM you owe debt but your shopping for major new purchase? Plus I think alot is on hold till we see who the president will be then decisions will be made more concrete with respect to lending issues
and credit guidelines... Just my 2 cents

[rrockinggramma]

For FHA, you can purchase while still in your chapter 13 for at least 1 year and you have made every trustee payment on time, with no hiccups. And of course your credit has to improve.

In addition, with a previous foreclosure (and if that is noted on your credit report) FHA makes you wait at least 3 years from that event to apply for another mortgage.

So I would think that once you are discharged from your chapter 13, you could begin househunting, if you have improved your credit score.

So yes, you can own a home again.

Chapter 7 is 2 years after discharge, Chapter 13 is immediately after discharge (or in with trustee permission after 1 year) and significantly improved credit

3 years after any foreclosure for FHA

Conventional is not an option for many years

[fslady]

Mortgage during Ch 13

If everything continues well, I will close on a house in late September with 19 months of ontime (early) payments in Ch. 13 and a FICO score of 660. I will have to get a 3% downpayment "gift" in this case from my daughter and the seller will pay the closing costs. The mortgage is with a national bank lender, FHA for 6.5% which looks like it's around average for this area. The mortgage person with who I am working said that 12 months minimum on time payments is the minimum months to be considered for FHA and if I had filed Ch. 7 there was no way that they could consider my loan application. The principal and interest will be less than $100 more than my rent. The lawyer who handled the BK is requesting permission from the Trustee to allow me to purchase.
So I'm keeping my fingers crossed!

[Carter]

Anyone bought a house during Chapt 13

Thank you all for the wonderful news. I actually spoke with a mortgage lender this evening and she told me the same thing. 3 yrs from foreclosure and one year on time payments to the trustee. So, if I can get my credit score up over 580 by September of 2009 I will be blessed with a home of my very own again! Provided of course I get the trustee's approval. Did I mention to anyone that the reason I have the foreclosure and chapt 13 is because I got bamboozled by a subprime lender with an ARM 1st and 2nd mortgage Oct of 2006 just at the beginning of the bubble! It's been the worst nightmarish 2 years of my entire life!!! It has put a tremendous strain on my marriage of 20 yrs too. Could there be a light at the end of my dark tunnel after all? I will continue to pray!

[epiphany]

There is indeed a light and great luck to you going forward!

You can do it.

ep

[Mark80]

Does your credit score actually improve and go up "during" the chapter 13 plan? I posed this question to my Attorney and he simply said that it wont, it just lists "bankruptcy" on your credit report?

I was hoping it could still rise during the period!