The Chapter 13 bankruptcy loan is a changing but still available product offering from many wholesale lenders. Since August 2007 the secondary mortgage markets have been extremely volitile pushing many lenders to cut cut off funding for debtors with spotty payment history. Two or more 30 day lates on a mortgage or trustee report since your Chapter 13 file date has procluded many debtors from seeking relief from many so called "subprime" lenders.These subprime lenders that are still in business as of this article are funding Chapter 13 loans with the same/similar guidelines as FHA, but charging much higher interest rates than the FHA product.
The only good reason at this point to use a "subprime" lender to buyout a chapter 13 is if your loan amount is non-conforming to FHA loan limits* Please note that the FHA loan limits are to be raised pending the implementation of the FHA secure program. Check the HUD.gov site for loan limits in your county/State*. Many mortgage brokers are trying to steer customers into harms way because of their own ignorance or lack of a license to do FHA loans. Always ask your broker if they are an FHA approved lender/broker. FHA was designed to help the subprime borrower. The only limitation on FHA is you cant lie about your income, and you cant borrow over the median sales price of house in your county. LTV restriction almost save the borrowers from themselves naver on a BK buyout will the LTV be over 85% which preserves equity.
The FHA loan has taken the place of the predatory practices that were common from many subprime lenders. Many brokers have misconception about bankruptcy refinancing and FHA loans I.E. The debtor must have been in an FHA mortgage prior to bankruptcy, to refinance with FHA out of the bankruptcy. This is completely untrue! The debtor can even leave a bankruptcy open with FHA with the appropriate motion from the court! Many people dont realize the power of FHA lending. Work with an FHA lender and an obvious expert.
Please visit http://www.bankruptcyhomeloan.org for more info! See why Mr. Peck is funding loans while other loan officers are funding career changes. Work with a chapter 13 mortgage specialist and get it done right the first time!
Author: Shawn M Peck
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