Chapter 13 and mortgage payment

[anncraf]

On April 14th we received a default notice from the attorneys representing our mortgage company. We had 14 days to catch up we were behind for march and april. We were to send the payments to the attorneys office, but i had already sent one payment that has not posted yet. My question is if those payments dont post before the 14 days are up can they foreclose. we already have a court order saying if we havnt cured the default in 14 days then on the 15th day they can proceed with foreclosure. Any one think they will do this Its not even that far behind. Thanks

[SinkingFast]

Are you paying the mortgage inside your plan payments or outside of the plan??

The hold up in payments being received in a timely fashion could be the Trustee if you pay inside the plan.

Outside the plan,............. We received notice of default and acceleration mid February. The Lender still hasn't done any thing yet. We get offers to take Home Equity Loans and HELOC's to get us the money we need to come current as well. Amazing in and of itself. You can't pay the regular payments, but they'll give you money on your equity to pay your deficiency balance. Makes a lot of sense. DUH!!

A lot depends on the State you live in as well. Each State has different Foreclosure Laws. Some states can go non-Judicial on a "Right to Sale" clause that's in your mortgage instrument. Other States, like New York, go judicial only. Judicial takes longer. They had to approach the Court and obtain a court order to sell your house to cure the default, advertise the sale of the house for a minumum period of time, and then hold the sale, where the Lender usually winds up buying back the house at sale anyway. That can take anywhere from 3 or 4 months to nearly 2 years, depending on the State.

In your case, with the Court order already in place, the Lender will have to advertise the sale. That varies by State from as little as 20 days or so to about a month of advertising. That's potentially how fast this could all proceed. May actually take longer. Seems these things tend to draw out much longer than the Lenders lead us to believe they will.

[Minnymouth]

YES THEY CAN,

In a chapter 13 plan YOU CANNOT GET BEHIND IN PAYMENTS......
Now if the problem is that your mortgage payment is in the Chapter 13 plan thru the Trustee - and HE HAS NOT PAID THEM YET - they can DO NOTHING!!!

If your mortgage payment is outside of the plan, yes they can....... they can start foreclosure proceedings.....

Did you check to see if the check has cleared the bank????

Also you need to be asking your attorney some questions........... Why did he let this go and not keep you posted..........

Minny

[anncraf]

chapter 13 and mortgage

My mortgage payment is outside the plan the payments have been sent to the attorneys for the mortgage company. My attorney has contacted them, so I guess we will have to see what happens. I do have proof that they were mailed before the 14 days was up

[SinkingFast]

I would suggest for future payments, if you get to keep the house, you get a different mailing address to send your payments to. Sounds like the Lender's attnys are a bit slow in notifying their client of payments made on the client's behalf.

Lenders cannot contract you during the BK due to the automatic stay that's in place. Even when you make payments outside of the plan. Also, mortgage Lenders tend to have a special office to handle payments from people in BK. Because, the employees of that Dept are specially trained and know what they can and cannot say to you if you contact them. What they can and cannot do with regards to your loan, under the Law, because you're in BK.

[anncraf]

chapter 13 and mortgage

Well my mortgage company forwarded the payment that I sent last week to there attorneys office, and the one I sent to the attorneys office was delivered today. So the attorney for the mortgage holder knows about both payments, so Im thinking I will be ok. Even if they started foreclosure would I have a chance to get it caught up.

[SinkingFast]

In your default notice, did they give you so long to "Cure"?? If that's the case, that means they wanted the payments that had been missed. Probably wasn't a letter telling you they were starting Foreclosure. They were just telling you that you were in arrears and warning you if you didn't pay up they could start Foreclosure on you.

If the Lender was Foreclosing, you'd know. They have to give you notice before they can actually begin the process. And in most States, it's a minimum of 30 days notice.

[anncraf]

Weve already been to court once over being late and it was ordered that if we missed 2 or more payments they were to send us a default notice where we had 14 days to cure the default and the payments were sent and received before the 14 days was up they just have not posted yet. We were due for March and April payments and received the notice on the 14th. I know my mortgage holder usually starts foreclosure after 4 missed payments, but it might be different in a chapter 13

[13inOR]

Anncraf: yes, it is different in a chapter 13. It is very important not to be late. We got behind once, never had to go to court, because our attorney settled it with them because we were caught up by then,but she told us
to be sure it never happened again, because if it does, they can foreclose in 14 days.
So in a chapter 13, they dont have to follow their normal foreclosure guidelines.
I also know that they only give you a couple chances, and if you exceed those, they can have the stay lifted without further adieu, take the house, and the court can say nothing about it. So, I know its really hard to make ends meet, but its really important to keep the mortgage payments going on time.
Believe me, I know things can happen, it happened to us once in ours when
my husbands mom suddenly became sick with leukemia, and was given 2 weeks to live. They live in Alaska, we live in Oregon, so my husband had to buy an $850 plane ticket to go up there (good thing he did, because she only lived 6 days from her diagnosis) Anyhow, there went our house payment money but at the time there was no other option. We managed to make it up, right about the time the mortgage lender got nasty.
YIKES, anyhow it turned out ok, but it sure is not a good thing to get behind on your mortgage when you are in a chapter 13!!!!