Wash Mutual Files Motion

[Crainial Access]

My lawyer left a message yesterday that my mortgage holder WaMu had filed motions asking for a lifting of the stay for co-debtor and some "protection" motion. They state that I have not been sending in the correct monthly payment of $988.00 which includes escrow for taxes. My original mortgage payments were for 472.03 and I paid taxes myself. I had to file Chapt 13 because I fell behind in my taxes, which the bank paid and increased my monthly payments to $1984.00 to recover past due amounts and I assume future taxes. My chapter 13 plan states that I will be responsible for taxes and my mortgage payment is 472.03.I have sent letters along with my on time payments to WaMu stating that I would again be paying my own taxes. I have contacted the local tax receivers notifying them of the same. In January when I went to pay my taxes I was told that the bank had already paid them, so I sent off a check to Wa Mu to reimburse them. They applied these funds to other areas and not to the escrow account. I have noticed from statements that WaMu is applying my reg monthly payments to other categories of my account other than principal and interest. I sent a "heads up" letter to my lawyer in June about my concerns with WaMu and they finally got back to me yesterday a day after the Motions were filed. Does this look like a huge problem for me.? I declared chapter 13 as an individual. Other than the Mortgage my wife has no debt in her name.

[HHM]

I think you are fighting an uphill battle, I am fairly certain that your mortgage agreement contains a clause about tax default and that the bank has the right, under the contract, to create an escrow account for those taxes. Basically, you breached the contract by not paying taxes and WAMU is simply exercising their contractual rights. This is an issue the BK can't really help you with. (it is similar with insurance, if you don't provide proof of home owners insurance, the bank can force place insurance). You can't modify the terms of your mortgage contract in BK on these ancillary issues.

Ultimately, you will probably need to reach some settlement with WAMU on this issue and grant them their adequate protection order. (which allows them to lift the automatic stay, "automatically" in the even of any future default during the chapter 13). Your attorney will need to contact WAMU's rep and find out what they want.

[MajorMike]

Why would you want to pay the taxes on your own and not inside of the mortgage payment anyway???

[EndInSight]

Why would you want to pay the taxes on your own and not inside of the mortgage payment anyway???

Saving to pay your taxes just earn a teensy bit of interest, is in my humble opinion...........plain dumb.....as most folks can not manage to save and find themselves in a pickle.

Then they have dig their way out and go BK for that and more reasons.....like using a credit card/HELOC to pay their taxes.

Sorry but I have NEVER been able to see the reason for NOT paying your property taxes inside your mortgage payment.

OMG your property tax is ONE of the biggest tax deductions left........... I 'think' I mean the interest you pay on your mortgage?
I should'nt post this late at night.

Miss Posh

[Crainial Access]

My mortgage was originally set up without an escrow and I don't remember it being offered as an option. I will most likely agree to what ever WaMu wants as it has been a struggle saving for taxes and I don't want to loose my house and land. I find it unsettling that my escrow payments are larger than my mortgage payments but thats the government and taxes for you. My chapter 13 plan had 400.00/month budgeted for taxes so I'll just add that and $112.00 more a month to keep them happy. I hope thats all they want....I'll talk to the lawyer on Monday.