how to make a mortage payment during a BK?

[justplaintired]

I know I have asked a similar question in a previous thread, but I am still worried about my mortgage.

We want to keep our home we absolutely don't want to lose it. We are current and have always been current. We want to reaffirm.

What has me worried is paying the mortgage payment on time once we file. I can't figure out how we can do that. We have 1st mortgage on Auto withdraw. Will this stop once we file? Our house payment is due on the 1st and when setting up auto withdraw with the customer service rep years ago she had us pick the date 1-15, we picked the 15. So if this stops how will I know? Will they send me something telling me? Should I call them right before we file? We are hoping to file right after the payment is taken our for this month.

2nd mortgage is Citimortgage. I do online payments to them. I understand my payment will no longer be able to be made using this method.

I guess I just want to find out if I should make preparations before filing to insure we have no problems keeping our home. That is above all else the most important thing and a big reason we are filing, we can't keep making cc payments and pay for this house. I know maybe that is wrong, but our home takes priority over some stupid cc. Besides that we made our cc payments on time month after month and still they upped our rate and refused to deal with us. They have gotten what we borrowed and then some with our min payments.

Thanks ahead of time. I just wanted to know how others dealt with making house payments while going threw a BK.

[InSeriousDebt77]

Does your bank have online bill pay? That seems to be the recommended method of payments. Or perhaps you can make a payment by phone

Just out of curiosity, are you reaffirming strictly for peace of mind? My lawyer absolutely recommended we do not reaffirm and instead do a ride-thru.

[justplaintired]

Yes peace of mind. Our attorney acted weird when I said I wanted to reaffirm. I guess I don't really understand why you wouldn't reaffirm if you intentions are to keep the house and we do.

If budgeting better once this BK is over and we end up here again, then maybe we shouldn't be here now.

I am learning very well already how to budget and am finding we are much better off then I ever thought and this is strictly because we quit using cc. Yeah we also quit paying cc, but never wanting to be late, we paid on time every month, which left us pretty much broke. Before we quit paying we were lucky to have any cash for a month, for groceries, utilities, gas..... We didn't have enough to pay cash for much of anything. There wasn't any cash. Now with no cc, we actually do better. I watch our checking acct like a hawk. Look for the best prices, basically we budget and I love it! To actually think about purchases and whether we can afford it right now makes me feel so much better!

Sorry I got sidetracked again. Online banking for us is not available. It should be by May. I wish I knew which is better reaffirming or not reaffirming. I guess I just assumed that the mortgage co would prefer reaffirming and would realize we want to keep paying on our house. I get scared when I see others on here have trouble making payments and if they get behind it turns into a nightmare. This is a nightmare enough for me, I can't bare the thought of another problem right now.

[HHM]

The only person to benefit from reaffirmation is your bank. There is absulutely no benefit to the consumer for reaffirming.

[laurannm]

I wish I knew which is better reaffirming or not reaffirming. I guess I just assumed that the mortgage co would prefer reaffirming and would realize we want to keep paying on our house. I get scared when I see others on here have trouble making payments and if they get behind it turns into a nightmare. This is a nightmare enough for me, I can't bare the thought of another problem right now.

That is the beauty of not reaffirming. I had similar concerns as we are in the same boat, where we want to keep our house. However, if you don't reaffirm and down the road you do have difficulty making the payments, you can walk away free & clear and not be held liable for any deficieny balance.

From everything I read and what my attorney told us, as long as you keep making payments on time you will be fine.

Plus, I know the new BK laws state that you must reaffirm, redeem or surrender. However, I have read several articles that mention that the law specifically refers to "personal property", and not real property. From what I understand there is a difference, but I am no lawyer

[justplaintired]

Thanks for the info, I know I have asked these questions before and hate to be repetitive. I guess I am just so confused about this whole mortgage thing. I am worried that for some reason the mortgage co will want to make it hard for us to keep making payments. I don't understand with the housing market like it is what they would possibly have to gain by doing that, but some threads I have read have implied that is was difficult to make payments. Perhaps I read these wrong.

So should I contact my mortgage co and ask them how to handle payments before we file. Ofcourse they know nothing about our filing yet, our payments are on time like always. Matter of fact we are still getting cc offers and checks from cc we are behind on. I know that will stop once they all know, and that is fine with me. I wish I could stop all cc offers forever. I hate them.

Thanks again!

[woohoogirl]

You can search for my post about my ordeal with trying to set up my payments after I filed BK. The only I can recommend it calling these people the day after you file. And if possible, make the payment a few days before you file, if you can afford it, thay way you have close to a month to sort out how to pay...whether in person, online, or by mailing to a special address. Hope that helps! I also strongly recommend if you don't have to reaffirm, don't. I though maybe that would also be a peace of mind thing, but thinking about it further and listening to reasoning of the knowledgable people on the forum....there is no benefit to you to reaffirm. Think of it the same way you would a car loan. Here's the idea....you have a car worth $10,000 well you owe $12,000, you go out and total it....yes insurance will come into play, but even if you get what it's worth, you after having reaffirmed, are still on the hook for at least $2,000. You can insert your home for the car in that little scene, but it doesn't change what could happen on the other side.

[laurannm]

No problem at all. I know for us we aren't filing for a few months, and we are on an emotional roller coaster . Some days we are excited at the prospect of being able to start fresh, but other days we are nervous at such big decision. Deep down though we know this is the best long-term decision we can make for us and our family.

I think when people say they are having difficult time making payments, it's because the methods of how you can make your become a little more limited (online access is removed, etc.). I think I remember a member on here saying they had Citimortgage and they still sent paper statements, but they were "information purposes only, and in no way an attempt to collect a debt".

Once your bank is set up with online bill pay in May, that would be the best way to go

[justplaintired]

Thanks I will call the day after we file. Depending on the date ofcourse. We still don't have an exact date. Our attorney's paralegal will call us when the time is closer. I will also ask her about payments. Sometimes I forget that's what we paid them for any questions we have.

I can't wait to get online banking. I have never used it for my personal acct. I have looked at the store I work for their online banking and can't wait to use it for my own personal use. I understand alot use this method to keep their payments current. It might actually work out alright depending on our file date. I know I can make my payments like always this month, it's next month that has me worried.

[Teddy]

Well, crap, I signed up to reaffirm my car, house and one cc (based on atty recommendation). Now I think I shouldn't be reaffirming anything!

I have to call them and find out how much it will cost not to reaffirm anything. The only disadvantage I see is that they might not report on your credit as paying on time so it might be harder to build your credit back up.

[laurannm]

What was your attorney's reasons for recommending reaffirm agreements?

[blaze]

I know everyone says not to reaffirm but we did our house and car. Our attny. told us if we knew we wanted to keep them long term that we should. From what I hear you have to worry about repo or foreclosure starting if you are even a day late. I don't want that stress - Life has it's ups and downs and even though we are going to come out of BK so much better - there still may be a day when we pay something a LITTLE late - and I don't want to be driving myself crazy about it. If there was even a slight chance we'd lose the house I was not willing to take that risk. Anyway - most seem to think it doesn't make sense to reaffirm but I'd do what your attny. suggests- if you trust him- b/c he knows how things go in your area - and do what feels right to you - you are the one to live with the decision! I paid our mortgage by check over the phone the first month after filing - The next I mailed a check. We have Citi so they still send a paper statement. There was a charge for doing the check over the phone.

[laurannm]

Did Citi force you to do a reaffirm, or were you going to anyways?

Were you negative on your schedules?