New Mortgage during BK?

We filed Chp 13 in September 2005 (not yet confirmed) and told our lawyer during our first meeting that we had planned/hoped to relocate out of state in 2006 or 2007. She told us that it shouldn’t be a problem if we kept up our current mortgage payments and our trustee payments…which we have. So recently I contacted her to find out what we need to do to get the ball rolling on relocating. She said we have to pay her a $400 fee to petition the court to let us sell our house and roll any money we make into another mortgage. Trick is that we have to get pre-qualified for another mortgage first!

Has anyone here gotten a new mortgage and relocated DURING their Chp 13 plan? Any tips for obtaining a mortgage while in BK? We currently have a VA loan (my hubby is a veteran) and an AWESOME interest rate and it will stink to give that up but we really, really want to move (from Texas to North Carolina).

I can image that most lenders are going to laugh and hang up when I call and ask them if we’d qualify!

We filed Chp 13 in September 2005 (not yet confirmed) and told our lawyer during our first meeting that we had planned/hoped to relocate out of state in 2006 or 2007. She told us that it shouldn’t be a problem if we kept up our current mortgage payments and our trustee payments…which we have. So recently I contacted her to find out what we need to do to get the ball rolling on relocating. She said we have to pay her a $400 fee to petition the court to let us sell our house and roll any money we make into another mortgage. Trick is that we have to get pre-qualified for another mortgage first!

Has anyone here gotten a new mortgage and relocated DURING their Chp 13 plan? Any tips for obtaining a mortgage while in BK? We currently have a VA loan (my hubby is a veteran) and an AWESOME interest rate and it will stink to give that up but we really, really want to move (from Texas to North Carolina).


I can image that most lenders are going to laugh and hang up when I call and ask them if we’d qualify!


It will not be as bad as you think, If you are in a chapter 13 you should be able to qualify for a new loan VA or FHA but you are going to need a 12 month pay history of the Chapter 13. If you do not have a 12 month pay history you are going to need to be in the chapter 13 for 12 months, as long as the payments have been on time you should be ok as long as you have trustee approval for the pruchase of the new home and rolling any profits into the new home.

Thanks. Do you have any suggestions for a VA loan lender that's national? Since we're looking to move out of state I didn't know if it made sense to check with local lenders.

Sorry...I'm clueless with this stuff!