Mortgage reporting During Chapter 13 plan

jimcren · Joined: 23 Mar 2008 Posts: 1 1.75 Dollars($)

WE have completed a Chapter 13 but our mortgage company has reported our payments during the course of the plan "post petition" as up to 180+ days late due to the arrears that was in the 13 plan. This effects our score but they refuse to fix it. Is this Legal I thought the 13 protected from them useing the arrearage against us duirng the course of the plan.

sara

Hi Jimcren,

Did you make late payments during the Ch13 plan or is it that you wewr late for 180 days and then you went on a ch13 plan? please clarify. If were late intially, then the lender can report it to the bureaus. They generally do so if one is 30 day late.

Take care

gmakerley · Posted: Mon Mar 24, 2008 8:48 am Post subject:

your bankruptcy trustee or your personal representation ought to be conversant with this subject.

frankly, i've never encountered the question and cannot provide any insight, but you ought to have the resources on hand to help you out.

Guest 0.10 Dollars($)

I was late pryor to the BK but the payments that were late (60 days) were inclided in the Chapter 13 fileing. But continued to be reported by the Bank as a continued and accrueing series of late payments for the entire three years of the plan. Even though our post petition payments were on time.

sara · Posted: Tue Mar 25, 2008 10:04 am Post subject: RE: dispute error in payments

Hi RC,

I do understand your problem. the bank should have reported the payments as something like "paid under Chapter 13 plan". Moreover you have been making the Chapter 13 payments on time. I think you should immediately call the bank and request them to make changes in their reporting. Or else, you may call up the bureau to which the bank has been reporting and dispute the error. You may have to send them a letter stating what you wish to dispute. Also keep a copy of the dispute letter.

Take Care

Guest 0.10 Dollars($)

Do I risk forclosure if I am late on mortgage payments while in Chapter 13?

larry · Joined: 27 Jun 2007 Posts: 2911 403.68 Dollars($)

Hi Jody,

Welcome to the forum.

I should suggest you to try and avoid foreclosure. IF you are late even when your are in chapter 13 then try to catch up with it. If you cannot be able to do so then you can even file chapter7 to avoid foreclosure. In that case you will be released from all your unsecured debt.

To know more about chapter 7 check out this article at http://www.mortgagefit.com/bankruptcy/chapter7.html

Feel free to ask if you have any further questions.

Best of luck,
Larry

Samantha

Yes you do risk foreclosure if you make a late payment while in Chapter 13. Most probably your chapter 13 can be dismissed because of it. You need to talk to the trustee about it. In case your Chapter 13 plan is dismissed, the lender will probably take a chance to foreclose your home.

The best thing is to have a straight talk with the lender as well as the trustee and check if the latter is willing to modify your Ch 13 plan. But filing ch7 isn't the right way perhaps because there are chances that you may lose your home and at the same time get the big hit on your credit.

Hope this helps...

God bless you.

Samantha

fireyone_02 · Joined: 20 Mar 2008 Posts: 267 -0.19 Dollars($)

Sounds like a difficult situation. I am preety sure they can foreclose if you make too many late paYments under chapter 13. My mother in law missed 2 payments over a 6 month period and they started foreclosure proceedings.

jbarto65 · Joined: 04 Nov 2007 Posts: 591 4.82 Dollars($)

I always thought that they will not foreclose unless you are late with 3 payments, she must have been further behind than that. I have been two late and they only threatened foreclosure if I got close to 3 late.

fireyone_02 · Joined: 20 Mar 2008 Posts: 267 -0.19 Dollars($)

Thats what I heard too. When I first got my manufactured home they somehow crdited another account with my payments for 3 m onths. I never heard anything by phone or mail, just one day a person showed up at the door with a letter telling us they were going to foreclose. I called the company and flipped. I had to get a copy of all my checks and send them to the company. That clarified everything up but I was so mad. It was their mistake and I had to clean it up and got the headaches from it.

Guest 0.10 Dollars($)

Hello,
We have been trying to get back to be current on our mortgage while going through chapter 13, but are not there yet. There has been someone coming around and taking pictures of our house. It looks like we could be caught up by the end of this month. While going through chapter 13, can we, or should we talk to our bank?

larry · Joined: 27 Jun 2007 Posts: 2911 403.68 Dollars($)

Hi Jody,

Welcome to the forum.

If you are late on your mortgage payments then you may get dismissed from bankruptcy and face foreclosure. In this case lender may not help you much but you can always or should talk with the lender.

Best of luck,
Larry

jbarto65 · Joined: 04 Nov 2007 Posts: 591 4.82 Dollars($)

sounds tough, hope you can get it all worked out with your lender, keep us updated.

Fireyone, did your mother law file bankruptcy during this period that you are talking about. I am really curious about the details on this.

jbarto65 · Joined: 04 Nov 2007 Posts: 591 4.82 Dollars($)

Are you sure that she was only late two times, I find that hard to believe, I know a lady that was like 6 months behind before they finally put her out and did a sherriffs sale. I don't think that it could happen at 2 payments, I could be wrong, but I think there is something that she is not telling you.

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