Mortgage Payments

[howdidithappen]

Been told I can make reduced mortgage payments under a Chapter 13 (intend to sell home). Is that accurate? Are there budget guidelines one must follow under a Chapter 13?

[justbroke]

There is no way to make a reduced mortgage payment on your primary residence, in a Chapter 13. Specifically, anyone that holds a mortgage against your "primary" residence, can't be affected by the Chapter 13, with regards to payment, interest, and terms. If you are behind in your payments on your residence, you would be able to take the past due amount and amortize it over 3-5 years, paying it back with no interest.

However, anything other than that is not possible unless you negotiate something with the lender. They are not required to negotiate with you, reduce your principal, reduce your interest rate, or change any terms of your original mortgage note.

There are definitely budget guidelines and a Chapter 13 is a real test of your ability to stick to a budget.