Court approval to buy a home during chapter 13?

[Lovelygal31]

I have everything lined up to buy a home and will need court approval.

I'm so nervous and afraid of them saying no. I will still be able to make my payments to the trustee after taking on my new mortgage. I will gather everything for my attorney to present to the court.

Who usually gets denied from the court for a home loan or does it usually go well?

[IOBA]

I have no answers for you.  

Just a "Go for it!"  and a "Good Luck!"  and a "Please update us on the process."

I am curious - are you scheduled to pay off all of the debt in full during the 13?  Or were there settled amounts?  

Has a lender approved you for a loan?  If you have a pre-approval, you should include that with your request to the court, along with a revised budget for home buying.  Are you planning to buy at the top of your pre-approved range, or do you plan to purchase something a little cheaper?   How will you pay for emergency repairs?  Will you have a home warranty?  How will you build reserves to cover those necessary costs?  

[Lovelygal31]

Thank you! I received my court approval through the court and am scheduled to close next week! What I sent to my laywer to petition for my approval was my pre-approval, my terms, my paycheck stubs and my revised budget plan.

For your questions, yes, I'm scheduled to pay all of my debt in full through my payment plan. I was approved for $350K but buying my home for $327K. Good thing that you asked about my reserves because that was the underwriter's concern. Luckily I had about 3 months of reserves in addition to what I'm bringing to close. 

So far, I got the clear to close and am closing next week!

Thank you!

[mrmagic9799]

Congrats on your closing, I too am in a 13 and looking to purchase a home, but from my understanding and HOW my payment is structured  every dime extra i have goes into the plan.  How was it you were able to save 3mths worth of payments plus closing and also what were your scores?  Oh and did you do a convential or FHA.  THanks sorry for all the questions..

[AlmostCreditGenius]

I received an approval to purchase a home in June 2018 for $600,000 using a jumbo VA loan. My chapter 13 bankruptcy didn’t get discharged until September 5th, 2018.

New credit is possible while still in bankruptcy!

[WD2005]

Had you already completed your plan payments by June? My last payment just arrived at the Trustee's office yesterday. Still waiting for NDC to update. I'm now in that waiting period before discharge but really want to get the ball rolling on buying a house. I'm wondering if I should just wait for discharge or petition to buy since technically I have no more payments left. 

[Superk88]

Would you mind me messaging you with some questions?

One of the biggest things right now that is preventing from filling chap 13 is the fact I wanna buy a house in the next 5 years...i need money to get the house...i need good credit...that all in all is gonna be hard with my current situation.

[AlmostCreditGenius]

I was approved for the VA jumbo loan of $680,000 in June. I actually bought a property for only $600,000 and closed in July.
No, my payments were not completed until August 2018. I received my discharge in September 2018.
I recommend talking to your lender to see what’s available for you. Everyone’s situation, although similar, is usually unique.

[Superk88]

You were out of Chapt 13 completely? I didn't even know you could buy a home while under chapter 13.

[WD2005]

After a year of on time payments and with trustee approval you can buy a house using FHA while in Chapter 13. I assume its probably tough to get approval if you're not in a 100% plan. I'm done making my payments and in that limbo period and still skiddish about asking for permission. I don't want to screw anything up. Sucks because there are some houses for sale that I really like and can afford.