Topic: Late payments before filing g a chapter 13 bankruptcy
-
Alex Carlucci contacted HUD about the borrower being able to qualify for FHA loans one year into a Chapter 13 Bankruptcy repayment plan. HUD specialist said it should be no problem but on the HUD 4000.1 FHA Handbook, it does not state that you can or you cannot do it. Therefore, the HUD specialist will escalate it to upper management to get confirmation. The team at Gustan Cho Associates has done literally hundreds of these in the past 10 years and never had an underwriter question this. The underwriting manager at EPM or Equity Prime Mortgage agrees with Alex Carlucci that is should not be a problem but the underwriter who is underwriting this file is the first underwriter that is bringing this up. Good underwriter and great point to get this cleared up now.