Purchasing home after Ch 13

[Nursemikki]

I'm new to the bpards here so first off, hello.

Secondly I filed Ch 13 May 10th, and had my 341 trustee meeting yesterday. I was always under the impression with Ch 13, after 1 yr of payments you could qualify for a FHA loan with trustee approval. However the paperwork I received from the trustee yesterday explicitly states they "don't have the authority to approve additional credit to purchase or refinance real estate. If you wish to do so, contact your attorney."

Now I'm confused. Has anyone had the opportunity to purchase while in a Ch 13?

[justbroke]

It is true... they don't "approve" a refinance. All you need is their "permission" to do so! You must also otherwise qualify for the refinance and that's probably what they are referring to. The only party that can "approve" the actual loan is the bank. The only party that can "approve" a modification to your Chapter 13 Plan, is the judge assigned to your case. The only party that must grant "permission" to do so, is the Trustee.

Additionally, your Trustee may also be implying that they will not give their permission if your payments for housing "increase" due to a refinance or purchase. This would usually cause an objection by the creditors and/or the Trustee anyhow.

[Nursemikki]

Ahh, I see. Just symantics. Gotcha. I'm pretty sure I could purchase a place nearby with the market being the way it is in a year's time that would have a lower mortgage than my current rent.

Thank you.