Chapter 13 Trustee FHA Loan Approval During The COVID-19 Outbreak

This Article Is About Chapter 13 Trustee FHA Loan Approval During The COVID-19 Outbreak:

We Can Help You Get Approved For An FHA or VA Loan During Chapter 13 Bankruptcy Repayment Plan via A Manual Underwrite. Apply NOW with Gustan Cho Associates and leave it to us.

Chapter 13 Trustee FHA Loan Approval During The COVID-19 Outbreak:

Gustan Cho Associates have built a name for themselves helping individuals and families who are currently in an active chapter 13 bankruptcy or less than two years discharged from a chapter 13 bankruptcy. We specialize in FHA and VA manual underwriting. Most mortgage companies do not participate in manual underwriting. This is true even before this pandemic. During the COVID-19 coronavirus outbreak, we have received an increase in mortgage application surrounding chapter 13 bankruptcies. We are here to help you and your family buy or refinance a property during these tough times. Detail the trustee approval process during the pandemic. In this article, we will discuss and cover getting approved for an FHA or VA loan during Chapter 13 Bankruptcy repayment period.

Getting Chapter 13 Trustee FHA Loan Approval During The COVID-19 Outbreak Mortgage Process

As of today, it is estimated that over 51 million Americans are out of work.

  • The good news is jobs are starting to become available again
  • While the COVID-19 cases are still increasing, it seems like the death toll has slowed down
  • This is a good sign for the future of Americans and the global economy
  • Many individuals were in an active chapter 13 bankruptcy before the pandemic struck
  • If you were unable to continue your payments due to COVID-19, you may not be eligible to enter into a mortgage transaction

However, if you were able to keep your job and continue to make payments to the trustee, you are more than likely eligible to purchase (or refinance) a single-family home with an FHA or VA mortgage.

Buying A Home During Chapter 13 And Getting Chapter 13 Trustee FHA Loan Approval During The COVID-19 Outbreak

Buying a new primary residence during an active chapter 13 bankruptcy. Buying a new home is exciting. Even if you are in an active chapter 13 bankruptcy or less than two years discharged from your chapter 13 repayment plan, you are eligible to buy a new home. While in the active chapter 13 bankruptcy, you will need to get permission from the TRUSTEE to enter into the new mortgage obligation.

Below are a few pointers for this process.

  • Stay within budget
  • If you are currently paying $1500 for rent, nine times out of ten, the trustee will approve you for a mortgage payment of up to $1500
  • If you go to the trustee to be approved for a $3000 monthly payment, they may reopen your bankruptcy and reevaluate your financial obligations
  • It is not the best idea to max out your qualifications
  • Just because your debt to income may qualify you for a high payment, it does not mean that is the best decision for you

We strongly encourage you to stay within your budget.

Most Bankruptcy Trustee Will Approve A Home Mortgage

Will most bankruptcy trustees approve a home mortgage?

Ask for trustee approval as early as you can during the process. Many counties will allow you to get trustee approval before you have put an offer in on a property. This is important so you know not to get your hopes up. If you are in a bankruptcy district that requires you to be under contract, we encourage you to speak with your bankruptcy attorney and get their opinion on past approvals. Trustee approval can slow down the closing process. Some counties are taking longer than average to complete the approval process. This is largely due to the pandemic and fewer staff in the court systems.

Refinancing During Chapter 13 Bankruptcy Repayment Plan

Refinancing during a chapter 13 bankruptcy. There can be many reasons to complete a refinance. Whether you are looking to pay off consumer debt, pay your mortgage off faster, or lower your overall monthly payment, a refinance may benefit you and your family. If you are in an active chapter 13 bankruptcy, you will need trustee approval to refinance your home. If you are discharged from your bankruptcy but are not quite at the two-year mark or, you will not need permission from your trustee.

Cash-Out Refinance During Chapter 13 Bankruptcy Repayment Plan

What does refinancing with a Chapter 13 bankruptcy payment plan mean?

Refinancing during a chapter 13 bankruptcy can be a little difficult. If you are looking to complete a cash-out refinance, you must have enough equity to pay off the trustee in full. This can result in certain creditors coming back after you after the discharge. In the past, we have seen bankruptcies in which revolving credit card debt is included and being able to come back after the individual because they did not stick to the full repayment plan. Paying the bankruptcy off early is not always the best idea. You want to talk to your bankruptcy attorney for specifics on your bankruptcy plan. A rate and term refinance is usually signed off by the trustee. This is because you are saving yourself money. Just because you are in bankruptcy does not mean you cannot put yourself in a better financial situation. Whether you are lowering the term of your mortgage or lowering your monthly obligation. Typically, the trustee will sign off on these transactions. Once again, we strongly encourage you to speak with your bankruptcy attorney before considering refinancing your property.

Chapter 13 Trustee FHA Loan Approval During The COVID-19 Outbreak: Qualifying For An FHA Or VA Loan With A Lender With No Overlays During Chapter 13 Bankruptcy Repayment Period

As you can gather from our website, we have helped hundreds of mortgage borrowers obtain mortgage loans surrounding chapter 13 bankruptcies. For any questions on the trustee approval process or the manual underwriting process in general, please call Mike Gracz on 630-659-7644. You may also email [email protected]. We are available seven days a week to answer your mortgage questions. There is plenty of contradicting information surrounding mortgage lending on the internet. We encourage you to call us directly to discuss our lending criteria. Many lenders deal with extensive LENDER OVERLAYS and most lenders have added additional overlays during the COVID-19 coronavirus outbreak. The good news is, Gustan Cho Associates are still lending without lender overlays to get in the way. Even if you have been turned down by your current lender, we encourage you to reach out to us today.

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