Notice of Final Cure

[jkmommy]

What happens if my mortgage holder doesn't respond to the final cure notice within 21 days? I don't want it to hold us up. Arrears paid (really were none but long story) and we are current (six months ahead thanks to the "arrears" paid in plan). My bank is a small bank that based on their proof of claim knows NOTHING about bankruptcy. They are reporting our mortgage as having been past due in 2010. This was AFTER filing but before confirmation so the trustee was holding our payments. Took 6 months to confirm. Bank filed showing six months of arrears that were really just payments being held by trustee until confirmation, Hoping to dispute that reporting after discharge. Bank filed their claim just before the deadline or lawyer said we'd have to file for them. The whole thing frustrates me. My 21 days (if calendar says) is next week!

[justbroke]

Please don't be frustrated. These are things that are anticipated, or should be anticipated, when filing a Chapter 13. The Notice of Final Cure process was created specifically to ensure that Chapter 13 debtors don't receive their discharge, only to be in arrears! If the bank does not respond in the 21 days, then your attorney can file a Motion for Determination of Final Cure where the court will make a judgment. As for the bad credit reporting, this could take some time to fix. I went back and forth with my bank for 2 years before they finally just removed everything from my credit report (including the prior history). A letter is going to work much better than disputing online since the online dispute process can be frustrating at times.

I would start making demands upon your bank NOW to correct the 2010 mis-reporting. I would remind them that you could and are prepared to file a Motion for Violation of the Automatic Stay but this may be more bark than bite. Perhaps the bank will fix this mis-reporting once you write to them and explain what happened (and send them copy of your Plan and maybe even the ledger history/balance from the Trustee).

I wish you the best of luck.