Chapter 13 - Buying a new home

[sbma1nc]

We filed last November and things are going well, so far. Our family business went under and we had no choice but to file(mostly credit cards, equipment and property lease). We are paying 2 Mortgages and a Loan (secured by my inlaws property) outside of the bankruptcy.
We are expecting our third child and have serious space issues in our current home. I would like to (if the trustee will allow us) sell our house and pay off the loan. With the equity we have we should still have enough for a down payment on another home. Any thoughts, advice, concerns would be appreciated.

[lrprn]

We filed last November ... I would like to (if the trustee will allow us) sell our house and pay off the loan. With the equity we have we should still have enough for a down payment on another home.

All you can do is ask your lawyer to approach your trustee and ask for his/her permission to put the house on the market.

Just curious....which state are you in? I'm living in the wrong state if your state's bankruptcy exemptions protect enough home equity to pay off your mortgage(s) in full and still have enough left for a downpayment on a new home (that's just my jealousy talking! )

By the way, getting financing for a new home while you are in Ch 13 is going to be very difficult. Have you tested the waters there yet? No sense jumping ship if you have no new ship to go to.

[Carter]

Can anyone tell me how long after a foreclosure and then Chapter 13 you can buy a home? We had to file a 13 after loosing our home in 2006. Yep, you guessed it we bought at the beginning of the bubble and got a crappy 1st and 2nd mortgage with an ARM for both. We have been in our chapter 13 since November of last year and it has been since September 2006 since the foreclosure.

[rrockinggramma]

For FHA, you have to not have had a foreclosure for 3 years when you apply. In chapter 13 you can file upon discharge if your credit has recovered enough etc. For chapter 7, you have to wait 2 years from discharge date.

So basically you filed in 07 so looks like in 2010 you could go try FHA and or as soon after discharge as you can get your credit and your reserves built up

[Flamingo]

Can anyone tell me how long after a foreclosure and then Chapter 13 you can buy a home? We had to file a 13 after loosing our home in 2006. Yep, you guessed it we bought at the beginning of the bubble and got a crappy 1st and 2nd mortgage with an ARM for both. We have been in our chapter 13 since November of last year and it has been since September 2006 since the foreclosure.

To be honest with you, having a foreclosure and then a BK on your records is probably going to hold up you for a while as to getting another home as you would be considered very high risk. FHA might view you favorably after a while if you really show your recovery with no late payments on anything, utilities included (now even late parking tickets and late library books are being listed on credit reports), and handling your credit wisely in the coming years. What you might want to do when you are done with your Chapter 13 is consult with a few brokers to see how you would stand in getting a home in the market at that time. If things still look bleak, just continue to be stellar with your credit and payments and try again a few years after that. Also, do your homework when it comes to your future lender and anything involved with a mortgage offer. Watch for scammers....Reputable mortgage lenders are going to be extremely picky in the coming years due to the backlash from the predatory lending and all the foreclosures.

[funspot08]

For FHA, you have to not have had a foreclosure for 3 years when you apply. In chapter 13 you can file upon discharge if your credit has recovered enough etc. For chapter 7, you have to wait 2 years from discharge date.

In Chapter 13, you can apply for an FHA loan during the plan, if your trustee signs off on it, after 12 months of successful payments.

[fortuna]

Hi, Newbie but I can help this is directly from the HUD web site:

Can a mortgagor acquire a FHA-insured mortgage while in a Chapter 13 bankruptcy?

Answer - HUD underwriting rules state that a person in Chapter 13 bankruptcy can purchase a home subject to a FHA-insured mortgage. Requirements are the applicant: must have completed one year of payments as required while under Chapter 13 and must obtain a letter from the Trustee of the court, stating the dollar amount the applicant can borrow. See HUD Handbook 4155.1.