Posted on: 13th Jul, 2007 05:53 pm
this question is 2 fold so try to bare with me. back in 2001 my wife and i obtained a loan together for a home. we divorced soon after we moved in. she told me that she didnt want the house and we performed a quit claim deed to remove her from responsibilty (even though if i defaulted she would still be affected) i got married to another wife a year later. due to cuts i was laidoff from my job of 14yrs. i wanted my home and to protect my assets i filed a chapter 13 bankruptcy.now that ive got a pretty good job and i still owe the trustee about a year of payments. first question: i think i want another home built is it possible to do this by selling the home without my first wifes permission? second question will a loan company consider me or laugh me out of their office by having the chapter 13 and with a year left on trustee payments? thank you.
Hi Skipper,
As your first wife had quit claim the house in your name you need not take permission from her. It is your house and you have complete rights over it.
Now the second question is more important. Your credit score must have gone down by quite a bit. Even if your income is good now, lenders would hesitate in lending to you because of the bankruptcy on your credit report. If any lender does agree he will quote you much higher rates than normal and make it difficult for you to afford the payments over a long period of time. And you need to check how the property market is like presently in your area and is there a possibility of getting a buyer for the house. You would have sold the house and paid off the loan in the first place instead of filing chapter 13 if the market had been good.
If you continue with the trustee payments for another year it is going to have a positive affect on other creditors interested in providing you a loan in future.
Thus I would say that you wait for another year and then take steps towards building your new home.
Miller
As your first wife had quit claim the house in your name you need not take permission from her. It is your house and you have complete rights over it.
Now the second question is more important. Your credit score must have gone down by quite a bit. Even if your income is good now, lenders would hesitate in lending to you because of the bankruptcy on your credit report. If any lender does agree he will quote you much higher rates than normal and make it difficult for you to afford the payments over a long period of time. And you need to check how the property market is like presently in your area and is there a possibility of getting a buyer for the house. You would have sold the house and paid off the loan in the first place instead of filing chapter 13 if the market had been good.
If you continue with the trustee payments for another year it is going to have a positive affect on other creditors interested in providing you a loan in future.
Thus I would say that you wait for another year and then take steps towards building your new home.
Miller
thank you for the quick response that is the answer i was hoping for. i believe it would be much better to wait and complete the trustee payments. and again thank you.
I too feel you should wait for some more time. Things are not in place to go ahead with the plan of building the home right now. You may face difficulties in moving ahead with it.