Late Fees

[Teddy]

I have a question on late fees - particularly on my mortgage & car loans.

I'm talking late fees they tack on if your payment is past maybe 10 days, but not 30 days where it would report to the CB.

I am probably not going to reaffirm either, but if I make the payment late -again not 30 days, but past the day they charge a fee - will they still charge fees?

How does that work on a loan that isn't reaffirmed.

My car pmt is due on the 15th, sometimes I pay it on the 24-25 - depending on when I get paid. That would typically incur a late fee - will it after my discharge?

I know you'll probably say pay it sooner, but I still want to know. I never pay past 30 days to make it late enough that it would show up as late on the CB - not that it will matter anyways if I don't reaffirm.

[seanf12]

If I understand correctly, but if you are even 1 day late on a mortgage\car payment that you haven't reaffirmed, the bank can start foreclosure\repo proceedings pretty quickly.

[Teddy]

Yeah, but is it one day after the ACTUAL due date? Or one day after 30 days?

If that is the case, I better rearrange my budget so my stuff is exactly on time which will be rough.

Plus, I wonder how eager they really are to foreclose/repo.

[seanf12]

I have always read even 1 day, but I honestly don't know for sure. My guess is that with the economy and housing market they way it is, lenders aren't in a hurry to take your home just to have it sit on the market.

When we file I do not plan to reaffirm on the advice of my lawyer, and since my car/mortgage payments are due on the 1st of every month, I am going to make sure I send them out (online bill pay via my bank) on the 15th prior, to ensure they have plenty of time to get there.

[Teddy]

Ok - I agree about the economy. You are one step ahead of me by paying your stuff a month early.

I could probably get back on track if I get my tax stimulus but I'm not sure I better count on that.

I am upset with my attorney, he recommended me reaffirming my house and my car Reading here that hardly any attorney does that makes me not even want to call him with questions.

[seanf12]

What was your lawyers reasoning for reaffirming?

[Teddy]

who knows?

I didn't know enough about it when I went in - and he basically said that if I was going to keep car & house to reaffirm. I can't recall a specific reason. I think maybe just to build credit, but I am not really sure.

I am going to have to call him and discuss it. Then he's going to want $$ to amend my petition to say that I'm not reaffirming those. He already told me that but I don't think it's necessary - especially if I can rescind the reaffirmation within 60 days of signing it!