Curious about mortgage

[truckerswife]

If our petition is filed next week (which is including past due mortgage payments) when would we start making our regular house payments. Would they start Sept 1st? Or do we wait. Just trying to prepare. Thanks

[JRTLover]

If our petition is filed next week (which is including past due mortgage payments) when would we start making our regular house payments. Would they start Sept 1st? Or do we wait. Just trying to prepare. Thanks

If the mortgage was "outside the plan" then they are due just like before. (If the payment was due on the 1st of each month, then they are still due on that day)

I paid my mortgage outside the plan just like I had done before.

[HHM]

Yes, you would need to start repaying the mortgage on its next scheduled due date (and you need to make sure you account for whatever arrears are due for the month in which you filed.

So, for example, if your mortgage is due on Sept 1, and you file BK on Sept 4, the first "regular" mortgage payment you would have to make would be Oct 1, but you would need to include the arrears for Sept. in your payment plan.

[truckerswife]

We haven't been making payments but are trying to save our house. We are including the past due payments in the plan. Our actual mortgage is not included just the past due payments.

[truckerswife]

Thanks, HHM.

[HHM]

I haven't been following all your posts truckerswife, but when it comes to saving homes in a chapter 13 you need to ask yourself 2 questions.

1. Is the home worth saving? And by this I mean, from an objective, financial perspective. (i.e. is the house upside down in value, does it need a lot of repairs, etc).
2. Can you "really" afford the monthly payments (and the chapter 13 payments).

The fact of the matter is, most debtor's who file chapter 13's to "save" their home, end up losing it 6 months to a year into the plan because they are in too much house and simply cannot afford the payment. In my mind, a big red flag goes up when someone wants to file chapter 13 to save their home when they have missed many payments, its a general indicator that they simply cannot afford the house.

If you are at all close to the median income for your state and circumstances, and have a good deal of unsecured debt, you may want to consider letting the house go and filing chapter 7.

[BKOnce]

I paid outside plan (never late before), but not on the 1st each month.. the 11th-12th (Grace period)... and Wells Fargo never said anything until my 13 compeleted, then I refinanced out after. But if you ever went past due even 1 month only, every lender will want by the 1st from there on.

[suzyq1971]

I, too, am curious. I make the rest of my downpayment to the lawyer on August 31 (pay day). On the 31 of August, I will be 30 days late on my mortgage payment (have had this rolling 30 day late since August 2006.) I have been making the payment on the last day of the month to keep it from showing up on credit reports as 30 day lates. Can I not pay that day and wait until October 1 to make my next payment? Sure would help to have that money to pay him (he still needs 1200).

An aside, what about the car payment? Its being paid inside the plan. Can I skip the payment until filed?

[lrprn]

I, too, am curious. I make the rest of my downpayment to the lawyer on August 31 (pay day). On the 31 of August, I will be 30 days late on my mortgage payment (have had this rolling 30 day late since August 2006.) I have been making the payment on the last day of the month to keep it from showing up on credit reports as 30 day lates. Can I not pay that day and wait until October 1 to make my next payment? Sure would help to have that money to pay him (he still needs 1200). ... An aside, what about the car payment? Its being paid inside the plan. Can I skip the payment until filed?

If you know you will be late one month on your mortgage and/or car payment on your filing date, be absolutely certain that your lawyer reflects this on your forms so the catch up payment(s) can be rolled into your plan.

Secured creditors (especially mortgage companies) pay close attention to this when you file Ch 13. If your forms show you were up to date on your payments on filing day and you weren't, this can open the door to an objection to your case. This situation is definitely better to prevent than to deal with after the fact.