Mortgage payments

[justplaintired]

I have looked around and can't find this answer. Maybe it's here and I missed it.

We have 2 mortgage payments, 1st to Wamu, 2nd to Citimortgage. Wamu is set up for auto withdraw, Citimortgage I pay online. Both we wish to reaffirm. By what I have read mortgage companies are likely to not reaffirm. Some have even said they sold the accts. soon after finding out a client is filing bankruptcy.

My question is, will my 1st mortgage continue to automatically withdraw my payment? We have never been late in 9 years. Our payment is set to withdraw on the 15th of each month, it is due on the 1st. We have always paid it on the 15th, however what will happen if they do not take it and I am late? I wouldn't know in time to make the payment if they quit withdrawing due to filing bankruptcy.

Citimortgage is paid online and I have noticed some accts. close online access once you file bankruptcy.

Has anyone got any advice how to handle this? We do wish to keep our house, we hope that we can reaffirm, our attorney is going to send reaffirmation papers. What has other's experience been with mortgage co.?

Any advice would be appreciated, Thanks!!

[justplaintired]

I no longer receive statements from Wamu, once you sign up for auto withdraw they will not send a paper statement. I will call and ask if they can please start sending statements. Do you think I could make payments over the phone? Is this something they will accept?

Citimortgage does send paper statements, so I can pay with those each month.

What I read is not that they will not accept payments, only that they may not reaffirm. I read we can keep sending payments, which they will accept, just for some reason some mortgage companies do not sign reaffirmation papers.

[stephanie4686]

citi

I have CitiMortgage, and once they get the notice you have filed they stop your online access. I don't autopay so I don't know what happens there. I do know that once you file citimortgage uses national bankruptcy services as a 3rd party provider. NBS handles your account until your discharge, and then you get a nice hefty fee at the end! Watch out, as NBS is incompetent. They lost my payment and I basically had to move mountains to get it credited to my account (and all the while NBS knew exactly where it was). CitiMortgage will let you sign a reaffirm if you really want to.

[lrprn]

I highly recommend finding a way to pay mortgage and auto payments through online banking whenever possible, especially during and after a bankruptcy. This way you have a neutral third party who sends out the payment at your direction and best of all can PROVE you paid on time if that ever proves necessary. No more your word against your creditor's (a losing proposition under the best of circumstances).

[seanf12]

How much was the fee you got charged by Citimortgage\NBS? I will end up in the same boat as you, as I also have Citimortgage?

What is the downside to reaffirming vs. not reaffirming? That part still confuses me a bit

[justplaintired]

What is NBS and how will you know where to send your payment? I wondered if it was a good idea to contact either Citimortgage or Wamu and talk to them ahead of time? Would that make since?

I am also curious what is this fee for? For filing bankruptcy? You say they lost your payment, what did you do then? Our checking acct. never has enough in it for double payments if either place loses the payment. There isn't cash anywhere, we are still mostly paycheck to paycheck, just small amount of cash definitely not enough for misplaced house payment.

What other type of method have others used to make payments? You mention online whenever possible, but if you can't get onto your online acct. how else can you make the payment.

[gophermn]

By what I have read mortgage companies are likely to not reaffirm. Some have even said they sold the accts. soon after finding out a client is filing bankruptcy.

You know, in some cases this might be the case but I agree with lrprn, make your payments ontime and you could be ok.

I lost online access to BillPay through my auto and mortgage companies but still make payments through my bank. I called Toyota and my mortgage company (Homecomings) and they basically laughed when I asked if they will not reaffirm. Like they want another house to have to deal with. The less money they have to pay via attorney to get your property on the market, the better.

And in today's market the last thing these mortgage companies want is another house to list.

[stephanie4686]

Um, I think the fee was somewhere in the $300-400 range. I put up a big fuss about NBS losing my payment and was able to get most of it waived. You will get a statement from citi with only your current monthly amount due and it will say something like "THIS IS FOR INFORMATIONAL PURPOSES ONLY! CONTACT YOUR ATTORNEY OR TRUSTEE!" and then the regular "this is not an attempt to collect a debt" I think the mailling address is different though so make sure to update your banks online billpay info.

Here is the link for the national bankruptcy services branch that serviced my mortgage in bankruptcy. http://www.bvwlaw.com/

They will not draft money from your bank account, I'm pretty sure you have to send a check/moneyorder.

Basically what happened in my case was NBS just credited the wrong account with my money. They found the money, but since they are a 3rd party (they really don't have "access" to your accounts is how it was explained to me) they couldn't fix it. I had to contact citi and then they wanted me to request a copy of the cashed money order from moneygram, and then fax it to them . And this was going to cost me about $40 to get this info from moneygram. Then I would have to send some other paperwork to get reimbursed by citi and that could take 30-60 days blah blah. I am so glad I had an attorney because I called him up and told him what happened, and he basically sent a letter to citi about violating the automatic stay and then like magic they fixed it!

Good luck with everything guys! Please send checks it you can because it is so much easier to request a copy of should there be any dispute.

PS- I am not reaffirming my mortgage, as it was in both my and my husbands name. He did not file bk. Am I correct in thinking that this is the best way to go? I am also a little confused about this, but my understanding is even if we were to fall behind (god forbid) they could not automatically start foreclosure preceedings because he is still on the loan?

[seanf12]

so with NBS\Citimortgage, you were unable to pay your mortgage payment through online banking (through your regular bank, like online bill pay)? Or was that not an option for you

[stephanie4686]

Sorry, I should have clarified. My checking account was garnished, hence the reason I filed for bk. That was why I was operating on a cash basis.

[justplaintired]

I have one statement that Wamu sent me last month at my request. Is it ok to copy this a few times and use it to send in my payments until this bk is over? Also, I thought maybe I could do the same with Citimortgage. Does this work?

I am still a little confused what exactly this 3rd party does. I guess I just assumed since we intend to keep the house we would just continue sending our payment directly to the mortgage co. Do I get something from someone telling me where to send payment? Also what other methods have people used to pay bills while going threw this to have prove of payment, and make sure payments are on time. I have checking acct. which we will keep, small town bank, nothing with them other then a checking acct.

Another question, will my property taxes still be paid from my first mortgage? I am in Indiana and they escrow my acct. and taxes come due in May and the bill goes directly to Wamu. This won't be a problem during my bk will it. It appears we will file sometime in April or hopefully the end of March.

[laurannm]

So when it comes to mortgages, are you required to reaffirm in order to keep your house during a Chapter 7 (assuming it can be protected with available exemptions)? Or can you just continue to make payments and not worry about it, as long as you remain current?

[justplaintired]

I am going by what I have read on this forum and what my attorney has told us. As long as your current, and keep making payments, your fine. The reaffirming, which is what we want to do, it something I just assumed mortgage co would do, but by what I have read not all do reaffirm, but as long as you stay current, you are alright.

The thing I just stumbled across is it appears sometimes it not that easy to make your payments while going threw the bankruptcy. I want to make sure I know where and how to make my payments while we file and before discharge. We have always been current and have never been late, not one time in 9 years, and sure don't want that to change now. We have enough financial woes, we don't want to chance losing our home too.

[gophermn]

So when it comes to mortgages, are you required to reaffirm in order to keep your house during a Chapter 7 (assuming it can be protected with available exemptions)? Or can you just continue to make payments and not worry about it, as long as you remain current?

We made sure our house was listed in the petition to reaffirm. As a fyi you will want to ask you mortgage company to send reaffirmation papers to the attorney to show - not only proof that you are reaffirming - but that you get credit where deserved making payments on time. Might as well get the credit where deserved.
Better safe than sorry.

[laurannm]

I share the same concerns, but it also sounds like making payments through your bank (using online banking) is the best way to go. Thankfully we do that now with the majority of our bills