Hello everyone! I have a mortgage on a property that I will be surrendering in my Chapter 7 bk. In April I fell behind on the mortgage for about 3 months. After that I was trying to work out a payment plan with the mortgage company and began sending in the regular payment amount. The mtg company kept the payments in an "unapplied" funds status and was supposed to be doing a modification for the past due balance. Since then, I've determined that it's not really in my best interests to try and hold on to the house. My question is can I get the payments that the mtg company is holding as "unapplied" back? They have 4 months worth of payments.
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Typically they will keep the payments - that is why they put them in a suspense account. (In a suspense account they have the payment they just don't credit your account so your mtg continues to accrue late fees etc. It is the worst of all worlds for the debtor)
Since you are now going to file, make sure you list those payments in the suspense account (because they have not been applied to the mortgage) and maybe the trustee can get them back
However, even if they manage to get the payments back, you do not end up with the funds - the trustee or the creditors do.Last edited by StartingOver08; 12-18-2008, 08:21 AM.Filed CH 7 9/30/2008
Discharged Jan 5, 2009! Closed Jan 18, 2009
I am not an attorney. None of my advice is legal advice in any way.. -
Thanks for your response!
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