home paid off..But

[crzyasu]

We just got done with a 5 year chapter 13....It wasn't so bad!

Anyway we own our home and we want to move closer to my husbands work..It will save us so much money to do that. We have a car payment of 346 that we got while in a 13 and been paying on it for a year and that's about all the debt we  have besides everyday living...we just got a orchard card and today my husbands 657 score went down to 646 and haven't even used the card. I just activated it yesterday. We were paying 995 a month on our 13 ,

OK here is the question I have..Since we own our home and it needs work on it before I put it for sale or not haven't decided what to do and that's why I'm here.

There are a few homes for sale where we want to live and a few we like...One is 289.00 down from 350...Now since we don't have any savings would we be able to buy a home with our bankruptcy and score..Oh my husband makes 72,000 to 80 a year..depends on over time and sometimes its more than that but I want to go by 72..

So do we take a home equity loan out for a down payment and if we can do we just pay on the home equity until the home does sell which is slow moving here or do they roll that into the home loan or have to pay it off with home loan..I know I sound dumb and i feel dumb..I'm new to all this as my home was passed down to me with a mortgage but we got it paid off but the loan stayed in my parents name as the lawyer said it would be easier to do but I'm on the deed..Hope I didn't confuse you all..Thank you

[BrianB_The_Loan_Professor]

 once you completethe Ch 13 it you are under the BK guidelines which are 2 years for FHA and 4 years for conventional

[crzyasu]

Oh god !

We have to wait 2 more years, Yikes!

Well that figures right into our life..I'm just tired of trying to get uphill and I'm getting to the age where I will be rolling down the hill with no fighting to get back up. Thank you for answering my question even if I didn't want to hear it ,I have to deal with it and go to sleep for 2 years..);

[haulingthescoreup]

Well, look at it this way: you'll have two years to build with new credit, shine everything up, and qualify for optimum rates. 

[chasmith]

FHA will allow a mortgage 1 year after filing Chapter 11.

[Anonymous]

Here're the FHA rules directly: http://www.fha.com/fha_requirements_credit.cfm Note the difference between Chapter 7 (which IS as Brian noted: 2 years post discharge) and Chapter 13 (as Chas says, you can finalize a mortgage as early as 1 year after the onset of payments, with trustee approval). Thus, you're in the clear, policy-wise. As recounted here and elsewhere, I closed on a mortgage 55 days after discharge of a Chapter 13 -- but that was almost two years ago now, and nothing about current lending conditions tells me it would be easier (or, likely, even as easy) today. Keep in mind that lenders don't have to follow FHA's minimum guidelines, and can require additonal time and/or conditions, as long as FHA doesn't specifically disallow those conditions.

[BrianB_The_Loan_Professor]

You may have been able to get a loan less than 2 months after discharge 2 years ago but how long was it from when you filed? Fopr 13 I believe they used to go by when it was filed - that and they were easier on a discharge

Here is the Link to FHAs site http://www.hud.gov/offices/hsg/sfh/nsc/faqgnsrv.cfm the one listed is not a HUD site -

Once you are out of the courts (discharge) you are treated differently than when you are in the 13 process - Huds website does not address the discharge of a 13 but the banks are using 2 years - I will check because I am not sure if it is from discharge date or filing date now - obviously that makes a huge difference

B

[crzyasu]

I have been cleaning up our credit for 5 years and mind you it was 3 credit cards and 2 of  them were hardly ever used. Our bankruptcy was 95% medical and we have insurance! My parents passed and left us this house with a debt but a lot of equity and my husband was working so we had to do a 13 to keep the house. We filed the 13 October 05 ...

As I said I worked on the credit and now  nothings on it but one medical that should not be there. Tried to take care of it but they wont budge so I'm giving it to my lawyer Tuesday and let him deal with it. I have a low score because all I have is our car showing up that's it and i know I need to get some credit for me as the card we got I just have in my husbands name.
I don't want to wait 2 more years to get out of this town and closer to my husbands work. To me 2 years is a long time after a 13 I could do a year but dang 2 is stretching my sanity!..I have talked to my husband about taking the 13 payments and putting half in savings and the other towards the car to get it paid off faster..We have never lived beyond our means and never went into debt for the next best car or TV ,we just live simple but medical got us.. I so want to start over and out of here and out of this house and move on too many memories for me..Oh did I say my neighbour is a crazy family member! He has threaten to kill us and I have it on tape and yes he is aware he was being taped but my husband was yelling back at him and not in a nice way.. The neighbors have called the cops on him but they just warn him...I need out of here so a year I can do since its winter he hibernates but when the sun comes out he goes nuts!!

So I pray that I can do it in a year....Please please good news!!

[crzyasu]

Ok Im back I went to sleep for 6 months and I cant take it anymore....We need to move ..My husbands score for Eq is 680 dont know the others...I'm thinking about going to wells fargo I suppose and try and see if I can buy a house..I have a few friends that went chapter 7 and 3 to 6 months  later they have a house and debt...We have 525 debt and own our home paid all our bills on time and payoff orchard every month....

So do you think its a good idea to at least try?

[mauve]

I'd print out my credit reports and talk to a loan officer.  If they think they can do it, a mortgage inquiry probably won't hurt too badly, right?