Rebuilding - Chapter 13

[apeydee416]

Hello everyone, hope someone can shed a little light on this for me. Here is my backstory: 15 months into a 36 month Chapter 13. Our landlord is selling our house so we have to move. We have been getting reduced rent over the past 6 years and with this move our housing expenses will increase. We have been looking into buying a house (about six months off) and have been advised that as long as the proposed mortgage payment is similar to what we will have to pay in rent at another home, then the trustee should approve the purchase. We have a underwriter who knows the history, has seen our reports and has read and confirmed our letter of extenuating circumstances. We have begun to reestablish history with a secured card and the credit reports are clean and accurate.

Our scores are in the upper 500's respectively. The lowest is 563 and the highest is 631 - (FICO not FAKO). We have about six to nine months before a potential home is ready. (in short, a house is being built for us by a family builder. If we qualify when its ready, its ours. If not, it goes on the market. No harm no foul). I understand that time is a big factor in rebuilding.. but is there anything we can do at this point to increase those scores?

[TRC_WA]

If there's a way I'd love to know how just out of curiosity.

You already know the trustee must approve everything... Revolving CC's are the way to do that... but still need trustee approval.  How did you pull off the secured card?

I'm not trying to rain on your parade but I don't see how you can expect decent scores while still in Ch 13. I was 630-640s at discharge and that was with a car payment that wasn't included which most definitely helped my scores.  Even now a year post discharge I am 680ish across the board.  Rebuilds take time and I hope you aren't expecting miracles.

[apeydee416]

Thank you for your input, clearly I am not expecting miracles. Can't rain on this parade!  We do have a car loan outside of the bankruptcy. Although I am not sure how you mean about "how did you pull off a secured card?". If you mean in terms of approval for credit while in the 13, we require permission on credit that exceeds $500.

630/640 is actually the target for our home loan.

[TRC_WA]

I was wondering how you got trustee approval is all... They definitely aren't your friend but if it's a low limit then I guess you didn't have to ask.

If 630-640 is your target you can probably be there at discharge with on time payments... getting there now I can't offer any advice as to how... If it's even possible.

I paid off my 13 a year early...if that's an option I'd look into it.  

[FixingFinance]

Do you mind telling me who your secured card is through? I'd really like to get one as I've read that it's a good way to get a head start on rebuilding while still in Ch. 13. I've applied for 1 secured card, I think it was a Cap One and got rejected.

I'm trying to figure out what companies will approve someone still in Ch. 13. I'm not looking for a high limit as I don't intend to use it for anything other than maybe gas...just for the sake of using it and paying it off every month. 

Any suggestions?

[apeydee416]

Ours was through Capital One.. they flat out denied you?