I just entered my 4th and final year of my chapter 13 bankruptcy, my goal is to refinance my home in order to remove my ex husband's name off the mortgage and find a new mortgage company. Do I need to wait the 2 years or can I do it sooner? I have never missed a payment since starting my journey because I have my payments being garnished from my paycheck each month.
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Congrats!
No, you don't need to wait any longer. The final year of the BK your mortgage payment has to be nearly equal or less than your current housing payment. After the BK and up to 2 years after discharge, it's just between you and your lender but manual underwriting is still required. After 2 years, you can get automated underwriting for FHA. After 4 years, you can go conventional with automated underwriting. You must not be late on any payments post-petition whether it's trustee, credit cards, or auto payments. In a way, it's harder to get a mortgage after BK because you will have access to other credit and more chances to screw it up forcing you to wait the 2 years.
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