FHA Chapter 13 Bankruptcy Mortgage in Alaska | Loan Approval

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this blog, we will cover and discuss qualifying for an FHA Chapter 13 Bankruptcy Mortgage in Alaska with late payments during the repayment. The housing market in Alaska is booming. Many people in the repayment plan of Chapter 13 are in a five-year term. This is a long time since not been able to buy a house. Gustan Cho Associates are experts in helping borrowers get approved for an FHA Chapter 13 Bankruptcy Mortgage in Alaska during the repayment plan.

When Can I Qualify For an FHA Chapter 13 Bankruptcy Mortgage in Alaska 

Homebuyers can qualify for FHA Home Loans after 12 months of payments during the Chapter 13 Bankruptcy Repayment Plan. FHA Loan With Late Payments During Chapter 13 Bankruptcy Repayment is not viewed favorably by all lenders. There is no waiting period after the Chapter 13 Bankruptcy discharged date to qualify for FHA Loans. However, any borrowers whose Chapter 13 Bankruptcy discharge has not been seasoned for two years are downgraded to manual underwriting. With manual underwriting, timely payments in the past 24 months are mandatory. Manual Underwriting also requires verification of rent. FHA Loan With Late Payments During Chapter 13 Bankruptcy Repayment is normally a deal killer by most lenders.

Best Lenders For FHA Chapter 13 Bankruptcy Mortgage in Alaska

FHA and VA loans are the only two loan programs that allow borrowers to qualify for a mortgage during a Chapter 13 repayment plan. Chapter 13 does Gustan Cho Associates Mortgage has helped countless homebuyers during Chapter 13 Bankruptcy repayment plan and also qualify for a mortgage after bankruptcy in Alaska. We have helped borrowers during and after Chapter 7 and Chapter 13 Bankruptcy. Qualifying for a Chapter 7 Mortgage After Bankruptcy in Alaska is straightforward. There is a two-year waiting period after the Chapter 7 Bankruptcy discharged date. Chapter 13 is a little different. We will detail FHA loans during the Chapter 13 Bankruptcy repayment plan with late payments in this blog.

Getting Approved For an FHA Chapter 13 Bankruptcy Mortgage in Alaska During Chapter 13 Bankruptcy

FHA Loan With Late Payments During Chapter 13 Bankruptcy Repayment with timely payments in the past 12 months. You can have prior bad credit, outstanding collections, charged-off accounts but lenders want to see no late payments after period of late payments from borrowers. Lenders understand people can go through financial crises during their lifetime due to unemployment, illness, death, divorce, or other extenuating circumstances.

FHA Chapter 13 Bankruptcy Mortgage in Alaska Lending Guidelines

Lenders want people to have rebuilt and reestablished themselves after periods of bad credit. Late payments after bankruptcy and/or foreclosure are very bad and can be an automatic loan denial. Mortgage underwriters view borrowers with late payments after bankruptcy and/or foreclosure as second offenders and do not want anything to do with them. However, Gustan Cho Associates can help people with late payments after bankruptcy and/or foreclosure qualify for a mortgage. In the following paragraphs, we will discuss and cover qualifying for a mortgage after bankruptcy in Alaska. We will go into detail about situations where potential borrowers were late during the Chapter 13 Bankruptcy repayment plan.

Missing Payments During Chapter 13 Repayment Plan

Chapter 13 plan payments

What can I do if I miss or fall behind on my Chapter 13 plan payments? First, if Chapter 13 Bankruptcy case has not been confirmed, it is imperative that petitioners stay current on of their payments. Those who default on their Chapter 13 Bankruptcy repayment plans may get their Chapter 13 dismissed.

FHA Chapter 13 Bankruptcy Mortgage in Alaska With Late Payments During the Repayment Period

There is no waiting period after Chapter 13 Bankruptcy dismissals on FHA and VA Loans but 12 months of timely payments are required prior to qualifying. Fannie Mae and Freddie Mac require a four-year waiting period after Chapter 13 Bankruptcy dismissal. Chapter 13 Bankruptcy Trustees will not recommend, nor will a bankruptcy judge confirm, a case that is not current with plan payments. Following confirmation, most Chapter 13 bankruptcy trustees will not file a motion to dismiss the case until they are about three months behind on payments.

FHA Chapter 13 Bankruptcy Mortgage in Alaska For Missed Payments During The Repayment Period

Petitioners should contact their attorney if they are going to miss Chapter 13 payments. This is because they can either file a motion to defer the debt to the end if there is room in the Chapter 13 Bankruptcy plan. Such deferment will not cause the Chapter 13 Bankruptcy plan to run beyond 60 months. Or petitioners can increase payments for the remaining term of the plan to cure the default. Keep in mind that, although almost all bankruptcy trustees will allow this. Some trustees will not allow petitioners to defer a default more than once.

Solutions To Being Late on Chapter 13 Repayments To Creditors

If late on Chapter 13 payments, generally, it does not result in anything. However, if payers get 2-3 months behind, the bankruptcy trustee will file a motion to dismiss the case for non-payment. At this time, petitioners will either have to become current with all payments or modify the Chapter 13 repayment plan to increase the payments. This is done so that they can get caught up over the remaining term of the Chapter 13 plan. In some situations, a change in income or expenses may warrant a decrease in the Chapter 13 repayment plan payment. But we recommend an attorney review each individual situation as a decrease in income or increase in expenses does not alone guarantee a lower plan payment.

Other Factors

There are other factors that can come into play such as the following:

  • the balance on the vehicle, the amount of debt
  • the amount of mortgage arrears being paid through the Chapter 13 plan
  • the amount of priority debt
  • Other factors

FHA Chapter 13 Bankruptcy Mortgage in Alaska Guidelines If Chapter 13 Gets Dismissed

Chapter 13 Bankruptcy Gets Dismissed

When a Chapter 13 Bankruptcy case is dismissed, petitioners will receive notice from their attorney with the order of dismissal from the United States Bankruptcy Courts through the mail. Depending on what it is dismissed for, petitioners could correct the deficiency with the case. This is such as non-payment or failure to provide requested documents and possibly vacate the dismissal. The motion must be filed within 14 days of the dismissal.

For FHA Chapter 13 Bankruptcy Mortgage in Alaska Approval, Lenders Want to See Timely Payment  for Past 24 Months

If petitioners cannot cure the default or more than 14 days have passed since the dismissal of the Chapter 13 Bankruptcy case, they can always re-file the case. This is as long as the courts have not barred from re-filing due to excessive bankruptcy filing in the past. Always remember that a subsequent bankruptcy filing may require a motion to extend the automatic stay. Or impose the automatic stay depending on how many cases petitioners have had pending over the prior year.

Qualifying For FHA Chapter 13 Bankruptcy Mortgage in Alaska With Late Payments

Qualifying For FHA or VA Home Loans with Late Payments During Chapter 13 Bankruptcy will be a major hurdle. Most lenders will not qualify anyone with Late Payments During Chapter 13 Bankruptcy. However, Gustan Cho Associates Mortgage Group is more aggressive and will consider borrowers with Late Payments During Chapter 13 Bankruptcy. Need a strong letter of explanation with supporting facts. Need to be timely in the past 12 months. Need to show proof of how the Late Payments During Chapter 13 Bankruptcy was a one-time event and will not happen again. To find out whether or not borrowers can qualify for FHA and/or VA Home Loans with late payments during the Chapter 13 Bankruptcy Repayment Plan, please contact GCA Mortgage Group at 262-716-8151 or text us for a faster response. Or email us at [email protected] GCA Mortgage Group is a national mortgage company licensed in multiple states with no mortgage overlays on government and conventional loans.