Post BK with CitiMortgage and late payments - late fees?

[CCsAreEvil]

Discharged back in 12/2009. We've been pretty much current on our 1st (CitiMortgage) and stopped saying 2nd (Chase) months ago. I haven't heard a peep from the 2nd, especially since our home is now only worth around what we owe on the 1st.

Citi (1st) had stopped allowing us to make the mortgage payments online. However, I am able to login to my mortgage account and see the current balance. Basically, I just have "view" (read-only) access to my account information. We are still receiving monthly statements which read "for informational purposes only".

As usual, mortgage payments are due by the 1st, and they claim to charge a late fee only if they receive payments after the 16th of the month. Things were a little tight the last couple of months. So, we had been mailing payments to them around the 15th. But I know they weren't receiving them until around the 18th or so. I actually called in to ask if I could get online payment access again. CSR said no since I did not reaffirm. I would need to just keep mailing the payments.

So, a couple of questions (I was afraid to ask the CSR on the 1st question below).

1) Would there be "late fees" assessed? I don't see them listed on the next mailed statements. I just keep making the usual monthly payment.

2) Having made a couple of payments past the 16th of the month, would this cause them to initiate foreclosure?

Current plan of action is to 1st try to settle with 2nd at some point (who knows when that would ever be). If that's successful, we'd stay in the home and keep paying the 1st. Obviously, if the 2nd refuses a settlement, at that point, we'd stop paying the 1st and stay until they kicked us out.

Thoughts?

[sah2]

I don't see how they could start foreclosure proceedings based on a few slightly late payments. I believe you have to literally be 3 months behind for them to start foreclosure proceedings.

[Pandora]

I think the bigger question that needs to be answered is can you really afford to stay in the house given things have been so tight for you and you've been late in paying - as well as how do you plan on settling with the 2nd if you are late paying your 1st, even if only by the 2 week extension? Can you reaffirm your house after the fact given you've done a "pay and stay" after your discharge? Something to ask your lawyer. If you cant, then it wont matter about the 2nd as you're not obligated to it anyway, it was discharged.

I'm sure it does matter if you're late on your payment by BK standards and foreclosure can be initiated regardless of the "3 month rule" because you didnt reaffirm the home, so they could ask for the stay to be lifted and proceed immediately. Guess its up to the lender on how they perceive things.

[CCsAreEvil]

I do not plan to reaffirm the house at all. Discharge was in 12-09. The only thing keeping the case open is the TT is distributing assets (tax return) which will probably happen in August (he gave creditors 3 months to submit claims).

Well, for those of us post BK understand that things take time to build up. My wife was out of a work and then is working again. We are pretty much caught up now. However, there is the issue if it's worth it to keep paying on the 1st to try to stay in the home (long term). Seeing that 2 neighbors right across the street just put up their homes (same house model) for about $15k below what I owe on my 1st (one is moving out of the country because of lack of work in this area), it's hard to make a decision. Both bought around the peak around 2005-2006. I guess they must be short selling?

Anyways, again, if we could settle with the 2nd (parents would probably help to pay the pennies on the dollar for that), then we may just stay. If they don't agree with any settlement, we'll just keep paying the 1st until we decide to officially "let it go". I guess worst case would be 3 months minimum to live rent free.. but with this ongoing housing market, I keep hearing people living in their homes for 1+ years rent/mortgage free until they are booted.

There was just an article recently that said Phoenix, Arizona homes will probably drop yet another 10% which I actually agree with. I still the housing market will be in the dumps for at least a couple more years.

[CCsAreEvil]

Update. We stopped making payments. At around 90 days past due now. Got a notice that Citi will now ask for they stay to be lifted unless I would like to bring the mortgage current. BK case is still open... the freakin lawyer on the trustee's side is keeping my case open forever because he thinks I may get some funds from some stocks. I really don't know how long they can keep the case open because of this (different story). They already have my tax refund money to distribute.

Anyways, I was wondering if someone can direct me on the foreclosure process in AZ. Do I need to leave the property the instant they post a notice on the front door/garage? I'm trying to see how much time I have now at this point to stay. Do they have to give at least 30 days notice to vacate? Thanks.

[LSUTiger32]

Update. We stopped making payments. At around 90 days past due now. Got a notice that Citi will now ask for they stay to be lifted unless I would like to bring the mortgage current. BK case is still open... the freakin lawyer on the trustee's side is keeping my case open forever because he thinks I may get some funds from some stocks. I really don't know how long they can keep the case open because of this (different story). They already have my tax refund money to distribute.

Anyways, I was wondering if someone can direct me on the foreclosure process in AZ. Do I need to leave the property the instant they post a notice on the front door/garage? I'm trying to see how much time I have now at this point to stay. Do they have to give at least 30 days notice to vacate? Thanks.

I don't know the rules in AZ but yes, they should give you a date that you have to be out of the house. If you know you are leaving anyway now, which it sounds like you do know I would just stay in contact with them from time and time and see when they want you out. In other words, if you get worried just give them a call and see where things stand. You may have read in the news that basically foreclosures have stopped due to this issue with the previous ones. I think you might be able to stay there for several more months so use this oppurtunity to stockpile cash like crazy.