Legal Question in Real Estate Law in California

Re: mortgage origination

In addition to Mr. Koenen's comments, I would like to point out that the debt-adjustment plan under Chapter 13 is likely to allocate nearly all of the debtor's income to the satisfaction of creditor claims and there may be no way to service a new mortgage without violating the terms of the plan. A plan can be modified, but must meet the original minimum requirements. The issues are better addressed as bankruptcy questions rather than under the hading of real-estate law.

Re: mortgage origination

that is up to the lender. If the person has enough equity in the property, lenders will often make loans, even when dealing with a bankruptcy issue. The interest rate will not be pretty.

Also, the credit report will be affected for 10 years after the final payment is made on the Chapter 13. Generally, if credit has been re-established, a borrower can get an "A" paper loan 4 years later.