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Ch 13 and mortgage approvals

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Valued Member

Re: Ch 13 and mortgage approvals

Thank you for giving me some hope!
Message 11 of 21
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New Member

Re: Ch 13 and mortgage approvals

My husband and I are just going on our 2 year mark of being in 13, everything I've been told ( and read), states after 2 years with trustees approval you may become a homowner again.   When we went into 13 we sold our home 3/06.  had bills because of a nasty strike/layoff + medicals.  I've just started to shop around ( want the $8 K tax credit if it's been 3 years or new home owner).    I've been waiting over 10 days for my lender to respond with a definate yes or no.....they have asked questions to reconcile my credit report to my list of creditors.    I'll be watching you all, cause I need encourgement...wer're late 40's.....and I feel this is the time to act.....if I don't get a definate answer Monday, I'm going to start shopping again. 

 

Message 12 of 21
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New Member
New Member

Re: Ch 13 and mortgage approvals

HELP!

I just went through a divorce/disillusion in which I sold my home in a short sale.  

My (5) year BK13 was discharged on 021909, i certified mail the 3 credit agencies my letter of discharge.

 After doing so 1 month later my credit score jumped about 10-20 points, and I applied for a mortgage at national city bank.

The bank denied me, even though I have a VA Certificate of eligibility.

 

My income is in the $60,000 dollar range, no debt and one secured card to rebuild my credit, I have 20 years on the job.

However I am still being turned down for any credit, wether it's a mortgage, motor cycle or appliance items.

I have paid everyone back through my BK13, and i keep getting told no, where is my success story,this is a nightmare. 

 

HOW IN THE HELL DO I REESTABLISH CREDIT WHEN NO ONE WILL GIVE ME A BREAK?

 

 

 

Message 13 of 21
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New Visitor

Re: Ch 13 and mortgage approvals

What an awful story, but you're not alone. Most people that file for a Chapter 13 do not complete it, and you would assume that paying your Trutee payments on time would help re-establish your credit.

 

How long ago was your house sold? Do you know if the lender reported it as a foreclosure sale?

 

Obtaining consumer credit (motorcycle or appliances) after a Chapter 13 is difficult. But you are on the right track  VA loans are difficult to get because the lenders have established a higher standard then for an FHA loan. Where is your mid score and have you thought about a FHA loan? There is a downpayment requirement and the lower the score, the higher the downpayment. The minimum downpayment for a FHA loan is 3.5%.

 

 

Message 14 of 21
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Moderator Emeritus

Re: Ch 13 and mortgage approvals


@angpang wrote:

My husband and I are just going on our 2 year mark of being in 13, everything I've been told ( and read), states after 2 years with trustees approval you may become a homowner again.  


That was true for us.  We were approved for a mortgage (actually a refi in our case) while in our Ch 13 (okay with trustee approval).  Good luck!

Just puttin' syrup on something, don't make it pancakes.
Message 15 of 21
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Moderator Emeritus

Re: Ch 13 and mortgage approvals


@D13 wrote:

HELP!

I just went through a divorce/disillusion in which I sold my home in a short sale.  

My (5) year BK13 was discharged on 021909, i certified mail the 3 credit agencies my letter of discharge.

 After doing so 1 month later my credit score jumped about 10-20 points, and I applied for a mortgage at national city bank.

The bank denied me, even though I have a VA Certificate of eligibility.

 

My income is in the $60,000 dollar range, no debt and one secured card to rebuild my credit, I have 20 years on the job.

However I am still being turned down for any credit, wether it's a mortgage, motor cycle or appliance items.

I have paid everyone back through my BK13, and i keep getting told no, where is my success story,this is a nightmare. 

 

HOW IN THE HELL DO I REESTABLISH CREDIT WHEN NO ONE WILL GIVE ME A BREAK?

 

 

 


 

You're doing a good job re-establishing credit with your secured card.  Rebuilding IS a lot of work and can be very frustrating.  Let us know more about your credit reports - there are a lot of very helpful posters on these threads.
Have you been able to pull an Equifax report from myfico yet?  If so, what is your FICO score?  What does it list as your good items helping your score and also the items hurting your score?  If you can post these items, we can give you some good solid help.
When you pull the report on myfico, it will also let you pull up the "simulator" which will tell you what to do for the best score improvement. 
This is a great forum to help get through the frustrating times.  If you can give us this info, we can help more.  Pulling your score on myfico costs a little (about $15) but it is an amazing amount of information that will let you rebuild most effectively.
OH - National City Bank probably pulled all three credit reports along with their FICO scores.  Ask your lender to give you a copy of those reports and scores if they haven't yet.  That's absolutely free.
Good luck - and let us hear more details so we can offer some helpful input.
Just puttin' syrup on something, don't make it pancakes.
Message 16 of 21
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Frequent Contributor

Re: Ch 13 and mortgage approvals


@angpang wrote:

...being in 13, everything I've been told ( and read), states after 2 years with trustees approval you may become a homowner again...

 


http://www.fha.com/credit_issues.cfm

FHA rules only require one year of payment into your Chapter 13 plan, but your trustee and bankruptcy court might have 'local rules' which are more stringent. And, of course, lenders are not obliged to lend at minimum standards.

 

Message Edited by oldhack62 on 09-20-2009 07:38 PM
Message 17 of 21
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New Member
New Member

Re: Ch 13 and mortgage approvals

The three scores are as follows Equifax-603   Transunion- 680   Experian-578  =FICO of 620

 

The good news is that when I was denied the loan by national city my FICO was 602,  my score increased with the

addition of a secured card.

 

My issues on my report are from the late pays due to the divorce, and some debt that was in the BK13 that show up on the

Experian report. Can someone tell me why the variation between these 3 agencies.

I consider myself a good risk; I payed back my bad debt, I have 20 years job security, and I gross $65,000.00 a year with no debt

other than a $500.00 Visa Card.  

 

Venting: How is it that A bank National City (PNC BANK) receive 38% of Federal dollars (tarp money) for their bad choices,

But yet  decline me a government (VA LOAN) to a  employee who works for the government!

 

Appreciate your response!

Message 18 of 21
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Frequent Contributor

Re: Ch 13 and mortgage approvals


@D13 wrote:

The three scores are as follows Equifax-603   Transunion- 680   Experian-578  =FICO of 620...


I'm afraid not. They don't use an average of the three scores, but take the middle one -- which is 603 -- as is.

Message 19 of 21
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New Member
New Member

Re: Ch 13 and mortgage approvals

If not; then how do they come up with the 603? I assumed that the three were indepedent of one another, therefore arriving at an unbiased score.

 

Q. Why would they take the middle and not the higher or lower number of the other agencies? 

Message 20 of 21
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