Saying about Bankruptcy Mortgage Loan

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Q. As some of you may know, we want to convert our Chap. 13 to a 7. We are actively seeking a new place to live. We have never been late on any mortgage payments except the "allegedly" crooked "equity line of credit", "secondary mortgage loan", "personal mortgage loan" (all phrases used by these #$%^&*), which before we decided to file bankruptcy to strip them down we were going to sue them and our lawyer at the time told us to stop all payments to these "alleged" #$^&*. Even though they were stripped off in the Chapt. 13, they were investigated by my state and later made a class action settlement, which will do nothing to repair the damage they have done to thousands of people like us. I digress, sorry. The other 2 mortgages have always been paid on time, one since 1988. Ditto all our bills until the bankruptcy lawyer told us to stop paying. In other words, we were on time up until the very end. Is there any chance if we found a home that we would be able to get a decent mortgage? In Sunday's paper, it said that people with FICO's were getting about 8% mortgages. I would die to have that rate! We are paying 10% and 14.5% respectively because we were taken in by predatory lenders (we could have qualified for much lower rates at that time--folks, ALWAYS check your credit reports when getting loans)--and our FICO's pre-bankruptcy were 690/681. The house is "upside down" about $21000 so we can't even re-finance. Today, the water heater broke. This house needs about $25000 minimum in repairs and updating and thus we are paying for a handyman's special when the two payments which total almost $1300 monthly before taxes could be used to get something decent. Any one have any experience with getting a mortgage during and/or after a Chapter 7 is completed? Forget the Chap. 13 because even after that would be over it would do nothing to help us with these bad loans. Or even any stories to tell about your trials and tribulations?

A. The general rule of thumb is that it takes 2 years after your discharge before you're able to begin getting reasonable mortgage rates. The primary determinative factor in qualifying is what your post-discharge payment history is like. I have, however, had clients who have been able to get a refi immediately after discharge; likewise, I have clients who can't get loans even 2 years after discharge.

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Who can hepl me?Troy Edward Cleveland Law Office of Troy E. Cleveland (6, 3) 14100 San Pedro, Suite 317 San Antonio, TX 78232 (210) 490-1541; Fax: (210) 490-0925 law...@swbell.net B.S., University of Nebraska - 1965 J.D., Univers...

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