Legal Question in Bankruptcy in North Carolina

obtaining a mortgage under chapter 13

I have been in a chapter 13 plan for 4 years. No late payments. Would like to purchase a home but can't find the right loan. FHA? Conventional? Are there limits on how much I can borrow regardless of current income? i've been told the ceiling is $120650. max.. Annual income appx. 57000 with appx payout each month 900. want to make a 5% down payment but understand 3% isn't unheard of. house is listed at 132900. Current interest rate at 7.50


Asked on 11/25/97, 9:47 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Mortgage while in 13

You cannot voluntarily incur new debt while ina Chapter 13 without court approval, and it isdoubtful that a lender would lend under thosecircumstances anyway. See your bankruptcy lawyer. Most likely you will need to pay off the plan (which you can do in a lump sum) prior to borrowing the new money.

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Answered on 11/26/97, 9:37 am


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