Discontinuing Mortgage Payments

[BrokeJack]

We'll be filing for BK probably in April of next year. Knowing that we'll be surrendering our house, we stopped making our monthly payment for the 1st time this month.

We don't have automated monthly payments, but we have our bank accounts set up in the mortgage company's website so then every month, I would go on-line and authorize to have the monthly payment deducted from my bank account.

My question is can the mortgage company take funds from my bank account once they determine that I have stopped making monthly payments? I would think they couldn't do that, but I just wanted to make sure I have all my bases covered.

[HHM]

Well, no one here can answer that question with any certainty, but typically, the answer is no without specific authorization, you would need to read through the loan agreement and your checking account agreement for sure.

If you want to eliminate any risk, simply go open a new checking account at a different bank.

[jessegirl]

I had the samething set up with my mortgage company. From the advice of this forum I did go and close the account out and reopen another one. I just wanted to be safe. As HHM says there is really no answer to that question. They shouldn't do it, but I guess some have. I would just close and reopen another one.