Buying A New House in Chap 13?

[Jman30]

Throwing this out there, even though I know it is a long shot.

My wife and I own our home. We are 14 months into a 36 month Chapter 13.
Our current mortgage is included in our chapter 13 payment. We have a perfect Chapter 13 payment history.

Recently, we found our DREAM home online for the perfect price. We currently owe $160,000 on our current house and $27,000 on our Chapter 13. The dream home is listed at $214,000.

I know it is a long long LONG shot, but anyone have any experience in our odds of buying this new house? I mean, people MUST move while in a Chapter 13, right??? Job transfers, etc must move people around. They can't expect people to stay in one place for 4-5 years during the Chapter 13.

[Minnymouth]

You can move etc in a Chapter 13, but I don't believe you can move and increase your house payment taking money away from the creditors payment plan..... just to get the home of your dreams.....

Bad situation..... you really need to discuss with lawyer and see options open.

Also, buying a new home right now would be at an extremely HIGH interest rate even if you could get it financed.......

You would have to have the approval of the trustee and court and I don't believe that will happen. You are not downsizing giving more money to the creditors, you are upgrading with a higher house payment......

Sorry, doesn't look like this is going to be feasible for ya.... but then again, only attorney or trustee can tell you....

Hope it works out for you......

Let us know what they say.....

[Jman30]

Yeah, I figured as much. Just thought I would ask. You never know, right?

[Minnymouth]

That's true...... shame it's that way though......
A "catch 22".............

[SinkingFast]

Kinda like walking down the aisle at Wal-Mart and seeing Christmas wrap and such, or Valentine's goodies. Seeing all the ads on TV of all the fun people are having and jewelry/flowers/candy women are getting. You know the holiday is there, but you can't participate cause you don't have any money.

Like looking thru the window into another person's house while they are having a party. Watching everyone laugh, and sing, and have a good time. Just don't house hunt right now, or during the remainder of your Ch 13 plan. You'll save yourself a world of emotional hurt.

[Jman30]

Yeah, believe me, I know. We've been in the Chapter 13 since December 2004. We know the pain of the holidays and listening to our friends go on and on about their new cars, vacations, etc.

It was really my wife who was looking at the homes. We both work around an hour from our jobs and we would really like to move closer. This home was in the town next door, it was bigger, nicer...bigger yard and a finished basement.

*sigh* Only 22 months left to go in the 13....

[13inOR]

I was thinking about your post and your situation, and I think the other posters are probably right, obviously the trustee doesnt want you to take on more debt to inhibit your ability to pay back what you owe.
I think the only way something like this might be possible is if it decreased your expenses. You mention you both drive an hour to work, that must cost quite a bit in gas.
Also, is there enough equity in your home to pay of the bk, and put enough down on the new home so your payments would be less? Thats just a thought, not to get your hopes up, but if it could be shown that your financial situation could improve by doing so, then it may work. However if
that can't be proven, then it most likely would never be approved. Of course,
it might force you to pay back 100% which you probably wouldnt have to otherwise. Anyhow, thats just my thoughts on the matter...have a good weekend!

[Jman30]

Thanks for your thoughts. I could refinance or sell my house and pay off all the debt in the Chapter 13, but that would leave me only $8000 or so left. Not enough for a down payment.

At this point, I am not too worried about it. I think I've talked my wife down off the ledge LOL

[Ch13experts]