...we keep hearing it has to be 2 yrs after discharge. i'm wondering if people have been able to do this (letter from trustee enabled them to qualify before discharge)?
The 2-year proviso is specifically directed at Chapter 7. Go to the FHA website and read the regs -- it spells it out: http://www.fha.com/credit_issues.cfm. There is no need for mystery here.
Much thanks for the link and clearing up the mystery.
Now, is there anybody out there that has actually been able to get a mortgage while in ch.13.??
Refinancing within a chapter 13 can be accomplished if the Trustee and mortgage payments have been paid on time during the bankruptcy. We are currently refinancing a debtor into a 5.5% FHA loan. He has been in his bankruptcy for one year and has made all his payments on time. However, purchasing a new home, while in the bankruptcy may pose problems unless you are in a 100% plan. The creditors may object to being paid less than the full amount that you owe and object to your motion, but it is certainly worth a try. The Bankruptcy judges and Trustees are on your side! They don't see that many success stories!
We were able to get a new mortgage 3 years into our Ch 13 plan. We filed old law; not sure if that matters. In fact, we sold a house that was included in our plan in 2005 and bought the new one in 2007. We had to get permission from the courts and trustee and our attorney was able to fast track it. We paid our new mortgage outside the plan.
Happy to announce that we were successfully discharged from ou 60 month plan in June 2009. It can be done, don't lose out hope.