Payments applied somewhere other than monthly regular mortgage payment?

[CapricaSix]

I have a Chapter 13 plan that ends in one month and the mortgage company shows I have made no regular mortgage payments since March. The trustee disbursed the full amount of regular payments to the mortgage company. Am I not supposed to be current with the regular mortgage payments when I complete the bankrupcty? Is it illegal for them to apply the payments to anything other than what the confirmed plan stated? I am now behind over $10,000! HELP!

[hmchem]

I wish I had a good answer for you but GMAC has been doing this to me for the last year. They have been putting money that is supposed to go to pay my post petition arrears into my escrow account and letting it just sit there. We now have about $5000 more than what my taxes are sitting in escrow while they show me 3 months behind and continue to show me past due on our credit reports. All arrears have been paid in full since August. My lawyer has assured me that the trustee will make it all ok at some point but I am frustrated. To top it all off I got an amended claim from GMACs attorney yesterday that if I read it correctly shows that we have overpaid arrears by $2000. GMAC helped drive us into this mess and they continue to screw our account up. I can't wait until our loan is sold off in their own bankruptcy; any mortgage company has to be better than they are. I wish you good luck and look forward to seeing if you get any resolution. GMAC still shows me owing a little over $10,000 myself.

[justbroke]

This is precisely an item that you need to bring up with your attorney. They probably kept adding late fees and other things and taking your money (payments) from the Trustee and putting it into a suspense account. This is just wrong. They are not allowed to just charge you what ever you want when your case ends.

This is housekeeping that needs to be done in Chapter 13s where you entered while in arrears with your mortgage lender. Your attorney may need to file a motion against the creditor in order to make sure you exit the Chapter 13 -- at discharge, with the default being cured and you back on track.

Not illegal, just bad recordkeeping. However, you MUST stay on top of this and get your attorney involved or it will cause you the "Foreclosure Right After Discharge in a Chapter 13" issue! Which, by the way, is just wrong.