|
 |
Home >> Lending >> Home Mortgage
Getting a Loan after Filing Chapter 13
Due to major health expenses since 2007, kidney transplant, heart attack and colon issues, my salary was cut. I recently had to file Chapter 13. I am now being faced with being laid off after twenty-nine years with the company. This will force me to lose the home I live in and seek something more affordable. I tried to sell in 2007, just as the ecomomy tanked, but was unsuccessful. After the discharge on the Chapter 13, would a bank approve a loan on a home if I had the funds to pay 70% of the price? These funds would come from retirement funds I have to take out and the severance package.
|
|
 You will take a tax hit if you cash in your retirement account. Examine that and the loans available before you actually do that.
Some lenders won't touch a person who has been through bankruptcy. That is their option. If you are a veteran and have VA benefits, a lender may consider your loan plus the VA guaranty. The VA doesn't automatically deny a person because he is in a Ch 13 plan, or has paid the way through it.
In the end, it is up to the lender. If you could pay 70% down, they are fine for collateral, but the bank still doesn't want to foreclose on or own your home. It all comes down to qualifications and can you afford what you want. If you retire, but cash in your retirement, you still need to be able to pay for the new home, taxes, insurance, upkeep, etc., so you have to qualify for the new loan and different lenders have different qualifications. Look around before you leap.
Published on BankingQuestions.com 9/01/10
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
