Bankruptcy Forum

Mortgage before discharge

leverage
10-27-2008, 02:17 PM
Is it possible to get a mortgage 2-3 years after filling with a 5-year Chapter 13 plan?

HHM
10-27-2008, 02:57 PM
Yes, it is possible.

halloweendmb1
12-08-2008, 04:51 PM
If you are asking is it possible to get a mortgage 3 years into filing for a chapter 13 before the plan is complete, not anymore. The last time I saw this was possible was back in 2005. Wells Fargo used to have a program where they didn't care as long as the title was clean, and as far as I remember it was for refinances only. I highly dount a trustee is going to approve someone to buy a home with debts still being owed. Have you asked the trustee?

lrprn
12-08-2008, 05:27 PM
When you are in an active Ch 13, you must have prior permission from your trustee to enter into any new debt agreement such as a mortgage until your Ch 13 is officially discharged.

Approaching your trustee before discharge to ask to take on new house payments that are significantly higher than your current rent is almost sure to trigger an edgy trustee to think, "Hmmm? Wonder how they can afford that new house? Sounds like they have more disposable income now. Boom! Before you know it, your trustee may petition the court to raise your monthly Ch 13 payment.

Best to stay way under the trustee radar unless the new house payment would be very close to what you are paying in rent now. I would definitely touch base with your lawyer before doing ANYTHING that could give you trustee an open door to think you have more money for him/her to take.