1 Payment Left - Do I Need To File A Motion To Incur Debt (For Mortgage)

[kornellred]

I have been pre-qualified for a VA loan for a house and I have one payment left in my Chapter 13 plan. The mortgage originator said that I will complete the application for the loan after I have made an offer. I did make an offer today and the broker is submitting it to the seller tomorrow. The contract has deadlines attached to it. I do not know if the VA requires the Chapter 13 trustee's approval to grant the loan with only 1 payment left, or if my loan application will be invalid without filing a Motion To Incur Debt with the court. I will try to contact my attorney tomorrow, whom I have not spoken to since the 341 meeting 4 1/2 years ago.

Getting eventual approval is certain, but I really don't want to lose the opportunity to buy this particular house waiting for the BK court to approve the motion. Timing is everything, they say.

Anyone know what I am likely to discover?

[Carter]

I am in the same situation but having a house built. My lender put a contingency on mine that it would close after I received my discharge therefore no need to get trustee approval. It's set to close 30 days after final payment to the Trustee. I only hope that my discharge is done in 30 days if it's more than 30 days then we will have to extend the closing.

[kornellred]

Well, I solved my own problem. I have decided to rescind the offer on the house I want to buy and simply wait for my discharge. Then, the trustee is no longer concerned with my finances.

[LadyInTheRed]

I think you made the right decision, kornellred. There are lots of houses for sale out there. You'll find another great one!

[getback]

I have one year left in chapt 13. I asked my lawyer to look into what I can do to get a house. I have been preapproved by a FHA lender. Part of me believes that homes and interest rates will not be as good as now. I find it difficult to wait 12 months once I am discharged...