buy house after filing chapter 13

Hi,

You can buy a home after your are discharged from the chapter 13 bankruptcy. It is possible to get a loan but you may have to face high rates.

James

Hi,

Welcome to MortgageFit Forums.

Are you discharged from chapter 13 or have filed it? I mean to say that are you still in the payment plan or have fished it?

If you are not discharged from the payment plan you may not be allowed by the trustee to get any new credit and add more liability. You can't get it without the permission of the court.

Feel free to ask if you have more doubts.

God bless you.

For MortgageFit,
Samantha

I filed a chapter 13 August of 2006 and never showed up for court because I just decided I did not want to file after all. I settled and paid off all my deptors instead. So the case was dismissed. Infact the judge ordered my attorney to give back all the money I put into it which she did. There must have been some problems with the case also. My credit reports do show case dismissed also. Can I have this erased from my credit and do I still have to wait 2 years after filing to purchase a home? FHA guidelines state that I have to have 2 years of clean credit and 2 years time lapse before i can purchase a home. I have a lender telling me I can purchase a home with 1 year of clean credit instead is this true and my 2 years is almost done anyways this August.

Hi Lei. Welcome to the forum.

2 years after filing chapter 13 is going to be ended on August of 2008. So you can get FHA loan then. So that should not be a problem for you. How much is your credit score is now and how much do you earn?

Best of luck,
Larry

After a chapter 13 is dismissed will I be required to pay off all the debt included in the bankrupcy before obtaining a mortgage loan?

Hi Cody!

Welcome to the forums!

Yes, you will have to clear off all your debts. However, you will have 3 options if your case is dismissed. Move to reinstate your case, Re-file under Chapter 13 or Re-file under Chapter 7.

Feel free to ask if you have further queries.

Sussane

i see another option there, Cody. that would be to NOT file bankruptcy, but to pay the bills.

chapters 7 and 13 are not the shortest paths to homeownership.

hi, i filed a chapter 13 banruptcy in may 2007 because i got behind on my house note. the mortgage co. gave me a 3 month w/o paying my note, since i had damage to my home. even though i didnt need the full 3 months i took advantage of it and after the 3 months i was told i had to pay for the three months missed in full. i entered into a repayment plan which i had to pay 450 more a month. i juggled everything to pay the note including opening 3 check loans which was a total scam. after several months i got behind again on the house note and mortgage co refused to take any money, stating i failed to comply to the agreement. the loan was excelerated and i could not get anyone to refinance the loan with my credit rating. i had to save my home by filing a chapter 13. i thought it would buy me more time to come up with the money, but i had so many fees including posting of my home being forclosed and attorney fees for the mortgage co. i only had 6k in credit cards, 19k owed on my vehicle, and 18k in rearage on my house. however, i still had a note plus a 1,000 bankruptcy payment. i was still stuggling. someone recommended me to give up the house and downsize. i finally took the advice. i included it in the bankruptcy and now have no real reason to stay in the bankruptcy. i can easily take the vehicle out and pay it myself and resume in paying my credit card and the rearage on the old home. if i pay 12k every year for 5 years i would have paid $60k; it's like i am paying double. i have been saving my money for a future home, but i understand there is no quick fixes on the credit. should i stay or should i handle my own finances? i want to build my credit. when can i start thinking about purchasing a new home how long do i pay for my mistakes. i am sorry for making this long, i am just so tired of being unworthy and embarrassed.

lauren, i honestly don't have any quick answers for you, but your last statement struck me. you are "tired of being unworthy and embarrassed."
it's no shame to be embarrassed, but i pray you don't carry this unworthiness any longer. "a man's doubt and fears are his worst enemies." "faith in oneself...is the best and safest course." "self-distrust is the cause of most of our failures...they are the weakest, however strong, who have no faith in themselves or their own powers."

i don't know if reading these quotes makes you feel better or not, but i send them your way to encourage you. no person is "unworthy" and i would like for you to at least accept that in your life and try to accept the failures you've felt as typical of what befalls all of us. you're not unlike countless others who have struggled with finances, etc. and there are bound to be countless more after you and i are both long gone.

Thank you Mr. Akerley. I sat and thought about what you wrote. Considering the economy and the shape alot of families are in, I am truly blessed. Thank you for the words of encouragement and the reminder that nor a piece of paper or a credit score defines us; we define ourselves. I will work on "me" and everything else will fall into place :)

Lauren

do you know of any company that will insure your home while you are still in chapter 13 bankrupty

hi libby!

welcome to forums!

i don't think insurance companies will be ready to offer you a homeowner's insurance if you've filed chapter 13 bankruptcy.

sussane