@Anonymous wrote:
March of 2017 will mark 4 years of my chapter 13. I've been interested in buying a house. Knowing that I could by while still in the 13, my fiance and I started the process. We have a mid mortgage score of 650. Upon contacting the trustee, the first step was getting pre-qualified with a lender. We were able to get pre-qualified for around 225k with no issue. As of now, I haven't went through with getting the approval from the trustee, and that is where my dilemma lies.
I can pay my BK off for about $2500 and be done with it. If I did this, I would have to wait a few months for discharge. I'd also be using some of our down-payment funds (FHA) if I went that route. The other issue is related to my student loans. I have about 15k between few different companies. Once I pay off, I know I'll need to resume payment on those. I don't know if those will positively impact my credit, as right now I get dinged a few points for my credit mix... So maybe a new installment loan would help. I also don't know if I can consolidate these ahead of time. I also don't know what kind of impact the actual discharge will have on my scores. My scores are fine right now... But I'd hate for the discharge to negatively affect them and my scores drop too low.
I really don't know which way to go. My gut says pay off the 13 done with it, as it has been a long 4 years. Any advice/guidance you guys offer will be greatly appreciated.
I can only speak to a few things because I had some of the same questions.
First off i was told NOT to pay off early. That depending of if its 100% payback or a portion agreed upon, you paying it off you could end up paying more than if you did in payments. I would ask your Trustee or attorney. I had asked my attorney.
As to the student loans: were they not incld? I know all mine were (except for one that had declined but I didnt know that until post discharge and they came for me RIGHT AWAY). In addition to that: any student loans being paid through the BR are still accruing interest and that will become due RIGHT AWAY post discharge too. are they just in forebearance or something? for 4 years? Anyway, call Navient or whoever to consolidate. thats what i did and it was awesome and smooth. since i consolidated with navient its reported and making my mix good. i dont know what my score was post discharge, but it was prob a bit better because a year +5 months before i was done i had financed a car approved through trustee.
hope some of this helps
