Late Mortgage Question

[nervousSC]

Ok, so in order to finance my 13 and get everything prepared for this, after a great deal of inner turmoil, I have decided not to pay my May and June mortgage payments. I will start again July 1st and the attorney has said that they will put the mortgage in the 13. They told me that I did not have to call mortgage company and tell them. My question is this....I have read several posts regard mortgage companies putting late months at end of mortgage or taking balance due and dividing it by x number of months (1200, $100/month for 12 months) and add that amt to current mortgage, do you think I should call mortgage company and see if they can do this for me and tell them that I will have to put it in BK if they can't? Would it be better this way, keeping the mortgage out of the BK or does it really matter? I'm so confused. I'll be filing 6/16 so I guess I need to take action on this pretty soon. Any thoughts on this would be appreciated!!!

[Minnymouth]

I'm not real familiar with the Chapter 13 plans and am under the impression that it is based on disposable income.

Well, when my attorney tried to put me into a Chapter 13 to try to save my home........EVERYTHING had to be paid off in 5 years (60 months)........

NOW TELL ME, can you pay a 20 - 30 yr mortgage off in 5 years even without having secured creditors????

WELL, I SURE COULDN'T EITHER............. that's why my home was sold.....
the monthly payment to the Court was so high most people couldn't begin to pay it........ and this didn't include utilties and living expenses...... lowest payment they came up with was $15,000 a year to the Trustee...

Being single - THAT WAS A JOKE...................... for sure..... (personally, just another way for the Trustee to seize your home and sell it at auction).

IT WAS NOT BASED ON DISPOSABLE INCOME.......... or % to the creditors.....

SOOOOO, BEFORE you enter into a Chapter 13, MAKE SURE YOU CAN AFFORD THE PAYMENTS TO THE TRUSTEE............. or you'll loose it all later down the road and still owe these debts.....

I could not keep my mortgage our of the Chapter 13 because of the bad title on it (it was seized by the Court)......

But if I could have done the Chapter 13 and left my mortgage out of it, then the payment to the creditors would have been reasonable and feasible.

So if your planning on including your mortgage in the Chapter 13, make SURE you know what your doing and up against as far as a monthly payment to the Court.....

Me, I would keep my mortgage out of the Chapter 13 if a owed a great deal on it... or the payments were too high.....

Just food for thought,

Minny

[nervousSC]

I'm just including the two months that I am in arrears in the 13, I will resume my normal payments to the mortgage company on July 1. So my question is, should I try to work out these two months with the mortgage company, telling them that I will have to put them in the 13 OR should I just ignore their calls and put those to months in the 13? My payment for five years, including the two mortgage payments should be 120/month.

[danas15146]

We have to pay our secured creditors within our plan (mortgage, second mortgage and car). The car will be paid off in the five years and we were told that after our plan is complete we will begin paying the mortgages directly again. Is this something that I should be concerned about?

[DOA]

My mortgage is completely outside of the plan, and I was told if you were not up to date on payments on the mortgage that the mortgage company can take the home under either BK. In order to use the home exemption, it has to be paid up to date. So, who's attorney is playing B.S. here?

[aa06a47]

Ok, so in order to finance my 13 and get everything prepared for this, after a great deal of inner turmoil, I have decided not to pay my May and June mortgage payments. I will start again July 1st and the attorney has said that they will put the mortgage in the 13. They told me that I did not have to call mortgage company and tell them. My question is this....I have read several posts regard mortgage companies putting late months at end of mortgage or taking balance due and dividing it by x number of months (1200, $100/month for 12 months) and add that amt to current mortgage, do you think I should call mortgage company and see if they can do this for me and tell them that I will have to put it in BK if they can't? Would it be better this way, keeping the mortgage out of the BK or does it really matter? I'm so confused. I'll be filing 6/16 so I guess I need to take action on this pretty soon. Any thoughts on this would be appreciated!!!

If your not going to make 2 months worth of payments on your mortgage, you need to put the arrears into your chapter 13 payment. Don't try and work anything out with the mortgage company, it might complicate things down the road.

Mini, I read your comments. In a Chapter 13, you do not have to pay 100% of your mortgage to the chapter 13, just 100% of the arrears. Secured creditors only get the arrears and of course there normal payment. However, this is where things get a little complicated. You have to pay the unsecured creditors at least 1) the value of you assets - the exclusions or 2) all your disposible income for whatever applicable period.....(whichever is greater in 1) or 2).) If you have alot of things that the trustee could seize, it could become really easy to not be able to make the payments and therefore push you into a chapter 7 liquidation anyways.

[aa06a47]

My mortgage is completely outside of the plan, and I was told if you were not up to date on payments on the mortgage that the mortgage company can take the home under either BK. In order to use the home exemption, it has to be paid up to date. So, who's attorney is playing B.S. here?

If your under a chapter 7 and are late, the mortgage company can take the home and sell it. In a Chapter 13, they cannot. That is one of the benifits of a chapter 13, it protects your home and allows you time under the protection of the court to catch up.

[Minnymouth]

aa06a47,
I was not in arrears on house payments,

Trustee seized home because of bad title(making it a free and clear asset to me).... mortgage company was declared as an unsecured creditor - no lien!

SOOOO - I HAD NO MORTGAGE - BUT A FREE A CLEAR ASSET TO SELL.

In order to keep it I would be forced in a Chapter 13 to pay FULL MARKET VALUE FOR IT AGAIN.... in the plan, along with other secured creditors if I had any (I did not).... still making my payment around $1200 a month (a little steep for a single person)..... for a 5 year plan.

Couldn't afford the plan, so home was auctioned off...... my disposable income never even was considered in the plan....

Minny

[nervousSC]

Thank you AA. I'll be able to breathe for a moment or two...until I start worrying about something else! (I can't wait till this is over, my child probably thinks I'm a lunatic!)

[aa06a47]

aa06a47,
I was not in arrears on house payments,

Trustee seized home because of bad title(making it a free and clear asset to me).... mortgage company was declared as an unsecured creditor - no lien!

SOOOO - I HAD NO MORTGAGE - BUT A FREE A CLEAR ASSET TO SELL.

In order to keep it I would be forced in a Chapter 13 to pay FULL MARKET VALUE FOR IT AGAIN.... in the plan, along with other secured creditors if I had any (I did not).... still making my payment around $1200 a month (a little steep for a single person)..... for a 5 year plan.

Couldn't afford the plan, so home was auctioned off...... my disposable income never even was considered in the plan....

Minny

I am curious, did the mortgage company get paid in full or was the pot divided amongst all the unsecured creditors? Your case is about 1 in a billion I would imagine. If the trustee declared them unsecured, then he better have treated them as such in the distribution of funds or you definatly have a case against the trustee for hell lets say, "preferential treatment of creditor" for one. You might be able to get the trustee's job on that one!!! Then I don't know what all else yet. You could get rich off settlements on this one mini.

Not sure where you live, but you should have also at least been able to keep the exemption amount for your homestead? Did they give you at least that amount of money?

[danas15146]

Minny - I need to remember how complicated your situation was BEFORE I get sick thinking that my attorney forgot to tell me that I had to completely pay off my mortgage in that five years! LOL - I thought I was going to throw up when I read that.

I checked the 13 data center and the trustee did get our first payment. No claims have been filed yet (Our 341 is June 5). Any chance that my payment goes down if they don't all file - or just the ones that do get paid more? We are paying 17% of unsecured.

[aa06a47]

Minny - I need to remember how complicated your situation was BEFORE I get sick thinking that my attorney forgot to tell me that I had to completely pay off my mortgage in that five years! LOL - I thought I was going to throw up when I read that.

I checked the 13 data center and the trustee did get our first payment. No claims have been filed yet (Our 341 is June 5). Any chance that my payment goes down if they don't all file - or just the ones that do get paid more? We are paying 17% of unsecured.

From what I understand, if the creditors do not submit a claim, they will only get what is left in the pot after the others are paid. So what happens, your payment doesn't go away, they will pay the creditors who didn't file a claim, but only up to the amount that you said you owed when you filed, and only after the people who have submitted a claim get's paid. In my case, I already have had enough claims submitted that those who don't submit will get zilch.

[cnet2k]

Hi Nervouse SC, I'm and underwriter for a mortgage co. and I would advise it would be better to keep you mortgage out of the bk. The problem is since you did not make your May and June pmt, you would be considered 1x30 late. (mtg companies roll 30 day lates if they are consecutive.) But if you choose to include it in the bk, at any time you do a refi, the lender will require a pmt history and would like to see no late pmts in the last 12 months. Are you planning on doing a refi anytime soon? If so, keep this in mind.