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