Settling Up After Discharge with Mortgage Bank

[Nomad]

Jimsus Pats I hate those guys. You can't get a straight answer from any customer rep. By the way, when I say customer rep in reference to Wells Fargo I'm using a misnomer. Anyway, I have a quick question. The trustee was paying an amount that the bank says was $35 a month too low. Now when you add that up over nearly six years you are talking some serious change. Anyway, I paid it and I have put am email into the lawyer wondering if they were allowed to do that. Does anybody have that experience? Also, the car is now paid off, do I contact Ford Finance to get my title, or should I just wait for them to send it to me? Who'd have thought there would be so many bills and extra work after discharge.

[justbroke]

They are NOT allowed to do that. Your attorney needs to file a Motion with the Court. The Plan, by design, cures all arrears and at the end of the plan, you should be even with the creditor. If the creditor had issue with the plan, they should have filed a motion or objected to the confirmation of the plan.

There is language in the bankruptcy code specifically to prevent this. Many Chapter 13 debtors have reached your point only to have the Bank now threatening to foreclose right after completing a Chapter 13. This is not supposed to be how it works.

[Nomad]

They are NOT allowed to do that. Your attorney needs to file a Motion with the Court. The Plan, by design, cures all arrears and at the end of the plan, you should be even with the creditor. If the creditor had issue with the plan, they should have filed a motion or objected to the confirmation of the plan.

There is language in the bankruptcy code specifically to prevent this. Many Chapter 13 debtors have reached your point only to have the Bank now threatening to foreclose right after completing a Chapter 13. This is not supposed to be how it works.

This was in the order, paragraph 3. I just sent faxed it to Wells Embargo, thanks.

“All mortgage and other secured debts provided for by the Plan are hereby found to be cured of ANY AND ALL monetary defaults as of the payment date for which the Trustee made the last distribution, and no additional interest, late fees or penalties may be assessed for time periods or payments due prior to that date.”

[justbroke]

“All mortgage and other secured debts provided for by the Plan are hereby found to be cured of ANY AND ALL monetary defaults as of the payment date for which the Trustee made the last distribution, and no additional interest, late fees or penalties may be assessed for time periods or payments due prior to that date.”

Exactly! Please let us know what happens wit this. It's very interesting.

[Nomad]

The paralegal I've been dealing with told me to keep her informed. Interesting is not the word that I'd use to describe it, since I've put in over $2.6K into this black hole when maybe I could have used that to do needed home repairs.

[Nomad]

FYI - My lawyer said find another morgage company as quickley as possible he runs interference against that particular company for many clients. I just sent this fax to my rotten mortgage company....
My attorney that he will be filing a contempt motion with the US Bankruptcy Court of Western Pennsylvania regarding my case and W___ F____ actions regarding the court order.
Here is the story believe it or not.


1. I received a letter from the Trustee dated October 7, 2010 saying that I needed to pick up mortgage payments beginning in November. November payments are due November 1. On November 22, 2010 I cut a check for my monthly mortgage payment is $XXXX to W___ F____ which they cashed on October 25, 2010.
2. The Trustee sent a payment of $XXX to W____ F___ on Oct. 29, 2010.
3. I received confirmation of my November payment, but W___ F___ said that I still owed them $XXXX. So, I called W___ F____ and asked if I could make up the payment over three paychecks. The customer service representative said that I could, so on December 22, 2010 I made an online payment of $XXXX. Of that amount $XXX was placed in an unapplied account, and I hoped that it should count against what W___ F____ told me that I still owed.
4. On January 7, 2010 I sent W___ F___ a check for $XXX which they cashed on January 10, 2011. This also was reportedly placed into an unapplied account.
5. On January 12, 2010 the case was discharged and I found out I didn’t owe anything from before the last Trustee distribution. So, I guess W___ F___ gets to keep the October 10 payment of $XXXX as a pre-discharge distribution and won’t count that amount won’t count towards the November amount due, as well as keeping the last Trustee October 29 disbursement of $XXX. OK I don’t like it but I can live with it.
6. On January 24, 2011 I make another payment of $XXXX over the phone line and at the suggestion of a W___ F___ customer service representative. Accordingly the unapplied monies should have me caught up and have February paid.
7. In addition today (2-3-2011) I received an escrow bill from 2010 amounting to $XXX.

Well it didn’t, so far W___ F____ has only credited my account for $XXX towards February. Not only did they (apparently) gobble up an entire payment from before the trustee’s last distribution which I had made in good faith, but their organization has lost another $2XXX+ which they expect me to pay before the 16th. If worse comes to worse I will pay it, but it sure seems unfair.

Much of the past due amount is because the Trustee was paying $XXXX a month and W___ F___ said the monthly payment should have been $XXXX and they are making me pay the difference, despite the court order. I have been trying to resolve this for weeks and even when I paid the amount on my statement W___ F___ continues to say that I owe more and today they sent me the escrow bill.

I am hesitant to send in a partial payment despite what they say, but then again I am anxious to rebuild my credit.

[Nomad]

Well the big boys at Wells Fargo blinked. They coughed up he extra missing mortgage payment I sent them, and now they only owe me about $1100 and we are square. The trouble is that it would cost $1000 to file the contempt motion with the bankruptcy court, so it probably would not be worth the effort to file, but I'm not telling those dirty guys at Wells Fargo that. I'm still going to switch mortgage companies after I get the numbers to work. One thing I learned dealing with those guys is don't give up and don't take no for an answer no matter how nasty they are on the phone, but if you find a cooperative person go with that. I'd say about 1 in 5 actually knows what they are doing over there. You also don't have the luxury of not paying them. NO MATTER HOW WRONG THEY ARE YOU STILL NEED TO PAY WHAT THEY ARE ASKING, even if you know they are wrong. Eventually you might get your money back if you are persistent.

[justbroke]

Well, your attorney would have filed a motion to get your costs covered, so you would have recovered the additional attorney fees.

I am very proud of you for sticking to your guns and standing up to the Bank. The problem is that too many debtors just let it slide by and allow the Banks to do this to them. Bravo also to your attorney! I always like reading about an attorney that is STILL truly representing his client well after confirmation!!!

Please remind your attorney that s/he is great and you appreciate them!