Home Buying in Pell City>Question Details

Pam Gunter, Renter in Pell City, AL

We are in a Chapter 13, we will have it pd out in 07/12. How do we find a mortgage co and is it possible to buy a home now.?

Asked by Pam Gunter, Pell City, AL Wed Jan 12, 2011

Help we need a home of our own. 1 st time home buyer.

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First, you can not purchase a home or anything requiring credit until it is approved by the Trustee of your Chapter 13. Second, contact your Trustee and/or your attorney as your unapproved action may disqualify you from your existing Chapter 13 Plan. Do not, and I repeat, do not get yourself in a contract to purchase property until you have all the facts and permission of the Court to proceed. Even then, it may require you to payoff the balance still owed on the Chapter 13 before you can purchase.
0 votes Thank Flag Link Wed Jan 12, 2011
Hi Pam. If you have been paying on your chapter 13 for one year and on time Fha considers this a debt obligation. Your payment will part of your debt to income ratio.

Long as you meet the other qualifications your good to go.

income/money/credit.


All the Very Best

Dave & Lisa
Web Reference: http://www.urhomerealty.net
1 vote Thank Flag Link Wed Jan 12, 2011
You may not purchase and/or add any additional debt (ie credit cards, etc.) until the Chapter 13 is paid off and or the plan is completed or it is approved by the Trustee. Even at the end of the plan there is still approximately a 60 day waiting period for an accounting to take place from the Trustee of your plan to finalize. Before you can entertain a mortgage you must also have a Certificate of Completion that has been signed by the Judge in your case. There are no lenders that will give you a mortgage without this documentation.

My suggestion is that you wait until you have been notified your plan has ended and the Certificate is forthcoming. In the meantime, sit down with a local mortgage lender in your area who does a lot of FHA loans. (FHA guidelines are more flexible). If you are not sure, ask a Realtor to give you a list of names. Get a pre-approval so you will know what items and documentation they will need for you to get approved upon completion of your C-13 plan.

Good luck.
Lori Santello
Matusoff & Associates Real Estate
Columbus, OH
0 votes Thank Flag Link Mon Jan 30, 2012
Call me and lets talk lease purchase..we have several options
Nancy Locklar
Realty Executives Complete
205-362-6888
0 votes Thank Flag Link Mon Jan 30, 2012
Call me and lets talk lease purchase..we have several options
Nancy Locklar
Realty Executives Complete
205-362-6888
0 votes Thank Flag Link Mon Jan 30, 2012
I have a lender that has helped several of my clients qualify for a mortgage in yur situation. Please feel free to contact me if you are still interested in buying a home and I will give you his number as well as other lenders so that you will have a starting point as to whom to call and how to get started!

Linda Morris - Cardinal Realty
(205) 368-0287
lmorriscardinal@aol.com
0 votes Thank Flag Link Tue Feb 15, 2011
Pam:
patience is a virtue. Sit tight, you may be able to save thousands on a house in 12 months from now, which will be only a few months from paying off your BK, and you might have been able to save thousands in the meantime for down payment. A wise man told me the other day, smart money is renting right now. Which i was bummed because i help people buy and sell but the more I think about it the more I realize he is right.

Ps. If you have found this advice insightful and helpful please mark it as best answer.
Thank you
0 votes Thank Flag Link Wed Jan 12, 2011
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