Buying a Home While in Chapter 13

I understand your frustration. I also admit to being baffled by your message. I wonder how you can afford a house payment if you are in the midst of a Chapter 13 plan, but I will assume you have a steady income and can afford the plan and a mortgage. However, if that is the case then you should be able to afford paying your attorney $750 to help you accomplish your purchase. Let me set my confusion aside and answer your questions.

The bankruptcy trustee does not want to issue you a virtual blank check to buy a house without knowing the exact terms of the purchase. Therefore, you need to convince the mortgage broker or loan officer to give you a conditional or contingent letter of credit for a mortgage/deed of trust in the amount of the loan you seek. If the present loan officer/mortgage broker is unwilling or unable to do so, then find another. The mortgage business is always very competitive and if you cannot find a broker willing to work with you then find another.

Regarding the forms required to petition the trustee to allow you to purchase the home, yes, you can do this yourself. Do not. Most people who attempt to file their own bankruptcy fail. The process is not rocket science, but it is not obvious or easy, either. Work with your attorney. By doing so your petition will be correct, and if it is not you have recourse if the attorney committed malpractice.

To learn more about buying a home while in the bankruptcy process, see Buying a House While in Chapter 13.

I hope this information helps you Find. Learn & Save.

Best,

Bill

www.bills.com/