RussellZ

Paying 100% Chap 13 Early, getting mortage for vacation home?

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I filed Chap 13 in June of 2012 and getting close to the end, but due to a very large increase income and wanting it out of my life I'm just going to cut a $50K check in November.  Thankfully with my business income will continue to rise ongoing (residual) and we're wanting to buy our dream home at the end of next year, but keep our current home as well which we owe about $94K on.

My question is, rather than paying cash for the new house up to a certain amount, I'd rather put down about $600K and get a mortgage for approximately $200-400K, under balloon amount. It is possible to do this about a year after discharge with super strong financials, or must I wait 2 years? I wouldn't want FHA, our current mortgage is and I'm not even sure you can have two FHA's.  If need be I can pay off the first mortgage.

Thanks for any info!

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I doubt you will get a conventional mortgage 1 year after a chapter 13 and you really do not want to get into the subprime business assuming you can find someone willing to make a subprime loan. I would really suggest paying off your current home and then paying cash for the vacation home if you have the money. That would be the easiest in your current situation. Plus, if things go south again, you do have the cushion of the vacation home cash to weather the storm in the meantime.

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On 9/29/2016 at 9:18 PM, RussellZ said:

I filed Chap 13 in June of 2012 and getting close to the end, but due to a very large increase income and wanting it out of my life I'm just going to cut a $50K check in November.  Thankfully with my business income will continue to rise ongoing (residual) and we're wanting to buy our dream home at the end of next year, but keep our current home as well which we owe about $94K on.

My question is, rather than paying cash for the new house up to a certain amount, I'd rather put down about $600K and get a mortgage for approximately $200-400K, under balloon amount. It is possible to do this about a year after discharge with super strong financials, or must I wait 2 years? I wouldn't want FHA, our current mortgage is and I'm not even sure you can have two FHA's.  If need be I can pay off the first mortgage.

Thanks for any info!

Is that amount going to pay off all unsecured creditors 100% of their allowed claims (not the amount you proposed under the plan which is almost always less than 100% of allowed claims)?   If not, I can help destroy your dreams right now.   Unless you pay all creditors, including unsecured creditors, 100% of their allowed claims, your case will not end early.

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