FHA Loan ??????????????

Discussion in 'Credit Talk' started by Becky, Apr 13, 2001.

  1. Becky

    Becky Well-Known Member

    I am so confused on this. Ok I was told that on the subject of FHA & CH 13 that
    (1)When you are in the BK with one year of good payments with the Trustee's approval you can get an FHA loan. Understand that.

    (2)Once out of the BK 13 you must still get the Trustee's permission.

    I don't get it. Why after the BK & Trustee have been Discharged 1 1/2 years ago do I need to get the Trustees permission to get a house?????????????????????? This is our situation.
  2. rachal

    rachal Member

    It has always been my understanding that once the BK was discharged, it is completed and there will no further involvement in the credit matters from the Trustee.
    My suggestion -- call the attorney which handled your BK (but talk fast...its billable -- lol)

    GEORGE Well-Known Member


    Are they just ASSUMING, or is it in WRITING???

    If the loan company says you need permission, fine.
    If FHA says you need permission, fine.

  4. Becky

    Becky Well-Known Member

    The person was I thought at first from FHA. I had emailed from a web site that actual ended up being from a bank in Arizonia that handles FHA. Not my lender nor FHA. SHe just said that is what they do.

    Like I said I knew if you were in the BK then yes you need the trustee.

    It just didn't make any sense to me why after discharge the trustee had anything to do with anything in my life.
  5. NanaC

    NanaC Well-Known Member

    Hi! Doesn't make sense to me at all and I have a hard time believing that...Why not call your lawyer for the Chap 13?

    And, I thought FHA required 2 years from discharge/dismiss...are you waiting for the next 6 months for that to happen? Or am I incorrect?
  6. Becky

    Becky Well-Known Member

    The only guideline for FHA on BK 13 that I have found is for while you are in it. After one year of good payments in the BK with the permission of the Trustee you may get an FHA loan.

    Ch 7 BK has to be discharged 2 yrs before you can get a FHA.

    There is no rule to any time limit necessary once you are discharged from CH 13. Or at least none I have found/told. This is how it reads:

    · Chapter 7 Bankruptcy: FHA requires a minimum of 2 years since the discharge of the bankruptcy. An explanation of the bankruptcy will be required. Furthermore, the borrower should have re-established credit (i.e. secured credit card) with no late payments.

    · Chapter 13 Bankruptcy: FHA will consider a borrower still paying on a Chapter 13 bankruptcy if the payments to the court have been made for a minimum of 1 year in a satisfactory manner (as verified with the courts) and with the approval of the court trustee.

    So again why is the Trustee's permission needed after discharge?

    The lender I am working with still hasn't gotten back to us. We were in on Tue. We were suppose to have an answer that afternoon. I am begining to think no one actual knows how this program works.

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