topic Re: Trustee Mortgage Approval in Chapter 13 in Bankruptcy

Trustee Mortgage Approval in Chapter 13

Anonymous — Sat, 25 Jan 2020 03:13:27 GMT

Hello,

I’m new to the forum. We are currently one year in our Chapter 13 (100% Plan). We are looking to purchase a home and have found a lender (should have pre-approval on Monday). We don’t pay rent as we live in government housing. We have saved up a pretty good nest egg. Just wanting to know who has been approved for a mortgage through the trustee while in Chapter 13. I’m really nervous.

Re: Trustee Mortgage Approval in Chapter 13

FireMedic1 — Mon, 27 Jan 2020 18:14:48 GMT

The FHA, VA or USDA may approve you while in a Chapter 13 plan if:

You qualify for the loan under the program’s underwriting guidelines.
At least 12 months of the repayment period must have elapsed, and you must have made all required payments on time.
The bankruptcy Trustee or a Bankruptcy Court judge gives you written approval to take out the loan.

Re: Trustee Mortgage Approval in Chapter 13

Anonymous — Tue, 28 Jan 2020 01:34:13 GMT

We got approved for a mortgage in our 13. Our attorney had to show that we could afford it by updating our schedules. We were renting, and the mortgage was only a few hundred more than what we were paying. We were able to trim some expenses out of the original schedules, and build in the extra cost of the mortgage. Our attorney then had to motion to incur debt, and he worked out what the purchase price should be (approx.) to the paymnent we were claiming we could afford.

The trustee granted it with no objections. We got the letter and were able to use it to get approved for a mortgage for within the budget we have alloted from the letter. Closing on our house next month. Its a straight forward process. As said before, you will need to have proof of 12 on-time payments of your 13. You are going to need MOUNTAINS of paperwork, explaination letters, proof of everything, bank statements up the you know where... Plan for a 60 day close. Most lenders will run and hide from doing a 13, but there are several that are good. PM me if you want the name and number of our mortgage people. Not sure if they can help you in your neck of the woods, but its worth a try. Good luck. Its 100% possible, but not easy.

Re: Trustee Mortgage Approval in Chapter 13

Anonymous — Tue, 28 Jan 2020 01:35:41 GMT

Oh and I saw you said that you were not paying rent. You need to be paying something close to what you are looking for on a mortgage, or you wont be approved for the single reason called "payment shock". If your mortgage is 25% higher than what you are currently paying for housing, then you wont be approved. You will need proof of this. It is a deal breaker.

Re: Trustee Mortgage Approval in Chapter 13

Anonymous — Tue, 28 Jan 2020 03:11:41 GMT

Thanks for info. Lender said I shouldnt have any problems with the amount is saving we have. I was just asking to see if anyone had any issues with it. I pm you as well.

Re: Update!!! Mortgage Approval in Chapter 13

Anonymous — Sat, 29 Feb 2020 03:15:14 GMT

Loan was cleared to close today! Closing is set for March 6th!! Yay!!!

Re: UPDATE!! Mortgage Approval in Chapter 13

Anonymous — Sat, 29 Feb 2020 03:16:30 GMT

Loan was cleared to close today! Closing set for March 6, 2020.

Re: UPDATE!! Mortgage Approval in Chapter 13

AllZero — Sat, 29 Feb 2020 03:17:27 GMT

Congratulations! Woop woop!

Re: UPDATE!! Mortgage Approval in Chapter 13

FireMedic1 — Sat, 29 Feb 2020 09:13:09 GMT

Congrats on homeownership!!!!!!!!!!!!

Re: UPDATE!! Mortgage Approval in Chapter 13

Under_Repairs — Sat, 29 Feb 2020 12:53:14 GMT

So happy for you and your family... congratulations!!

Re: Update!!! Mortgage Approval in Chapter 13

Anonymous — Thu, 05 Mar 2020 01:26:42 GMT

We closed today!! It was a gut wrenching process but totally worth it!!

Re: Update!!! Mortgage Approval in Chapter 13

AllZero — Thu, 05 Mar 2020 02:01:53 GMT

Congratulations! Very happy for you. 😃

Re: Update!!! Mortgage Approval in Chapter 13

Anonymous — Thu, 05 Mar 2020 13:45:54 GMT

@Anonymous wrote:
We closed today!! It was a gut wrenching process but totally worth it!!

Congratulations!

Re: Update!!! Mortgage Approval in Chapter 13

coreyb80 — Thu, 05 Mar 2020 19:00:55 GMT

@Anonymous wrote:
We closed today!! It was a gut wrenching process but totally worth it!!

Congrats and continued success!!

Re: Trustee Mortgage Approval in Chapter 13

Anonymous — Thu, 19 Mar 2020 18:56:31 GMT

@YoureWelcome - Congratulations! I just filed my 13, you give me HOPE!!

Re: Update!!! Mortgage Approval in Chapter 13

Anonymous — Thu, 19 Mar 2020 18:57:41 GMT

@Ladybug2 - Congratulations!

Re: Trustee Mortgage Approval in Chapter 13

Anonymous — Wed, 06 Jan 2021 16:03:54 GMT

Same situation, currently looking for a lender. Any recommendations? Thank you.

Re: Trustee Mortgage Approval in Chapter 13

Anonymous — Wed, 06 Jan 2021 16:04:40 GMT

In the same situation, looking for lenders. Any recommendations? Thank you!

Re: Trustee Mortgage Approval in Chapter 13

coreyb80 — Mon, 11 Jan 2021 19:15:13 GMT

@Anonymous wrote:
In the same situation, looking for lenders. Any recommendations? Thank you!

I believe there may be a couple in the Mortgage sub forum. Post there and I'm sure they'll be able to assist.

Re: Trustee Mortgage Approval in Chapter 13

Anonymous — Sun, 31 Jan 2021 21:33:35 GMT

I used People's Bank Mortgage out of South Carolina.