Posted on: 24th May, 2009 10:11 am
hi, my name is jen and i need help …. i was told by my mortgage broker (suburban mortgage) that we would be qualified for a mortgage even though we have been only discharged a little more than a year ago… we sold our house due to being told by the courts in chapter 13 bankruptcy courts to sell in january of 2007. since then all of our debt was removed and satisfied. so since the last 2 years we made sure we paid all our bills, rent and even improved our credit history but now the underwriter for fha is giving us a hard time because in chapter 13 we made our payments to the mortgage late and the reason why was being my husband lost his job and no money was coming in. (ps….. the credit report state we have been late since we started chapter 13 in november of 2004 for over 180 days late even though that’s when we started chapter 13 they the mortgage company never changed the credit reports it kept on saying we were late over 180 days since the beginning……)
our trustee and our attorney told us the only thing we needed to pay was his trustee payment of $50.00 until we sold our house.
prior to us using this mortgage company we were told we should not have any problems due to filing chapter 13 now we are…. i really thought the underwriter was going to consider the pros and cons and make a decision regarding our present situation…..(i was told if the underwriter does not approve then they will have a committee hearing to decide if we are qualified is that true???) we even got a lsr before even looking at houses and they the mortgage company was well a ware that we were had been in bankruptcy and had been discharged, they had our paper work since last year…. we are in a contract now and i so nervous that we will not be approved and get the house because we where late with our mortgage payments prior to the sale of our house. can you please help to let me know if we still qualify for a fha mortgage???? please help!!!
and ever since then when we sold our house in january 2007 paid all our debt from the proceeds of the house, we improved our credit score and paid everything on time for over 2 years we still have no chance to get a mortgage? my last question…. when it is officially “2 years from discharge†will the underwriter disregard being late during chapter 13. i really do appreciate you taking the time to help…
one more question…sorry if we had let the house go into foreclosure we still would have to wait 2 years to qualify for a loan too, right?
i don’t know what else to do or who to talk too… i was hoping that maybe with your experience you might have dealt with this situation before or personally have better relationship with your underwriter…….
our trustee and our attorney told us the only thing we needed to pay was his trustee payment of $50.00 until we sold our house.
prior to us using this mortgage company we were told we should not have any problems due to filing chapter 13 now we are…. i really thought the underwriter was going to consider the pros and cons and make a decision regarding our present situation…..(i was told if the underwriter does not approve then they will have a committee hearing to decide if we are qualified is that true???) we even got a lsr before even looking at houses and they the mortgage company was well a ware that we were had been in bankruptcy and had been discharged, they had our paper work since last year…. we are in a contract now and i so nervous that we will not be approved and get the house because we where late with our mortgage payments prior to the sale of our house. can you please help to let me know if we still qualify for a fha mortgage???? please help!!!
and ever since then when we sold our house in january 2007 paid all our debt from the proceeds of the house, we improved our credit score and paid everything on time for over 2 years we still have no chance to get a mortgage? my last question…. when it is officially “2 years from discharge†will the underwriter disregard being late during chapter 13. i really do appreciate you taking the time to help…
one more question…sorry if we had let the house go into foreclosure we still would have to wait 2 years to qualify for a loan too, right?
i don’t know what else to do or who to talk too… i was hoping that maybe with your experience you might have dealt with this situation before or personally have better relationship with your underwriter…….
Hi jsmith,
Generally, after a chapter 13 bankruptcy you need to wait at least 1 year or so to qualify for an FHA loan. If you have made your payments on time under the chapter 13 plan, you may not have to wait that long. You can get a loan almost immediately after the chapter 13 discharge, in such a situation. But if you have had late payments under the chapter 13 plan, it will be difficult for you to qualify for a loan. The waiting period will be counted from the date of discharge from bankruptcy. If you had let the house go into foreclosure you still had to wait for at least 2 years. But the difference with the present situation is that you were neither able to keep your chapter 13 commitments nor were you able to keep your house. Thus, the lenders would now be a little sceptical about offering you a new loan.
However, as you have been paying your bills etc on time for the past 2 years, there may be an outside chance that some lenders may approve you for a loan. Therefore, I would suggest you to go for a no-obligation free mortgage consultation with the community lenders and discuss your situation with them. They will assess your current situation, credit score, income etc and will be able to tell you whether you will qualify for a loan. If you do qualify for one, they would also be able to assist you in getting the loan.
Generally, after a chapter 13 bankruptcy you need to wait at least 1 year or so to qualify for an FHA loan. If you have made your payments on time under the chapter 13 plan, you may not have to wait that long. You can get a loan almost immediately after the chapter 13 discharge, in such a situation. But if you have had late payments under the chapter 13 plan, it will be difficult for you to qualify for a loan. The waiting period will be counted from the date of discharge from bankruptcy. If you had let the house go into foreclosure you still had to wait for at least 2 years. But the difference with the present situation is that you were neither able to keep your chapter 13 commitments nor were you able to keep your house. Thus, the lenders would now be a little sceptical about offering you a new loan.
However, as you have been paying your bills etc on time for the past 2 years, there may be an outside chance that some lenders may approve you for a loan. Therefore, I would suggest you to go for a no-obligation free mortgage consultation with the community lenders and discuss your situation with them. They will assess your current situation, credit score, income etc and will be able to tell you whether you will qualify for a loan. If you do qualify for one, they would also be able to assist you in getting the loan.
Thank you, so I guess I have to wait to see if my mortgage broker and underwriter will make a decision on whether we are qualify or not.... thank you again Jennifer
THANK YOU FOR THE INFORMATION....I need to clarify some information regarding being late for the mortgage payments.... I was never late with the trustee payments to the Trustee (if I was the plan for Chapter 13 would have been Dismissed with the Courts) I was late with some of the mortgage payments paid outside the plan. My credit report state I have been late 180 days to the Mortgage Company but that can't be true because I did some research through Bankruptcy Courts and it states..... Once you file bankruptcy, the creditor/lender can no longer report your debt as delinquent. So, except bankruptcy, no other debt affects your score after filing. But you can rebuild credit in 2 years. The bankruptcy on the other hand, stays on your report for 10 years but it doesn't affect your credit rating after the initial hit. The best thing is, when you file bankruptcy, the court sends a note to your creditors/lender preventing any activity against you. So, you can expect no further credit damage.
I beleive the Courts never sent notice to the Mortgage Company to let them know we were in Chapter 13 Bankruptcy.... Because since we filed in November of 2004 if kept on showing that we were late...... 180 days thats impossible because thats when we were starting our new payment plans.
Thank you
Jen
I beleive the Courts never sent notice to the Mortgage Company to let them know we were in Chapter 13 Bankruptcy.... Because since we filed in November of 2004 if kept on showing that we were late...... 180 days thats impossible because thats when we were starting our new payment plans.
Thank you
Jen