Mortgage Balance

[miramar]

Just finished my long chapter 13.Received a letter from the trustee letting know when to resume our mortgage payment which was included in our plan. The claim from the mortgage company was 100k. In our plan we paid over 44k which left a balance of around 55k. Our mortgage company says that we owe 87k from the statements that we have been receiving. If for the past 5 years we were not charged interest and the 44k was applied to the principal how could we owe 87k. Ditech is our mortgage company and they won't give us any information on this issue. We want to sell our house and would appreciate any information on this issue. This is my first time posting to this forum. Thanks in advance for the help.

[LadyInTheRed]

You must pay interest on your secured debt during a Chap 13 when you are retaining the property. Your plan payments should have covered your regular mortgage payments, including principal and interest and tax and insurance if they are part of your payment. If you were behind on your mortgage, the arrears paid in the plan would also continue to accrue interest.

[miramar]

Yes the plan payments did cover the mortgage payments and there was some arrears that were paid in a separate claim from the mortgage company. So my question is the 44k amount that was shown as being paid and submitted on the cure report from the trustee to Ditech not deducted from the the amount of the claim that the mortgage company submitted for the chapter 13

[BNKRPTinNC]

Did you do an amortization schedule on your mortgage? This would give you a more precise figure as to where the money went based on the life of the loan, interest, escrow and what was owed at the time of filing. 44k may have been paid in but how was it broken down. I know from past experience that what was paid in does not mean it comes straight off your principle. The actual balance of your mortgage, separate from the arrears, would , I imagine, be the claim but as LITR posted interest will still have to be paid throughout the life of the loan.

[miramar]

How would I do the schedule. From now or from the time we filed? Also we purchased the house in 2005 for 95k and filed for bankruptcy in 2011, so 11 years later the balance owed is still 87k. It just doesn't seem to add up. Thanks for the response.

[BNKRPTinNC]

How would I do the schedule. From now or from the time we filed? Also we purchased the house in 2005 for 95k and filed for bankruptcy in 2011, so 11 years later the balance owed is still 87k. It just doesn't seem to add up. Thanks for the response.

Google "mortgage calculator with amortization schedule". Put in the amount financed with term (30 year / 15 year), interest rate and start date. Your calculated payments, for the loan amount only, will be figured. Remember that if there were monies taken for escrow that would not be included in the amortized schedule. You should be able to determine how much you had paid down at the time of filing, what was paid during the 5 years while in the 13 and what current balance should be. It won't be exact but it should be close. Also, you ought be able to get an amortization schedule from your lender which is usually included with the original loan paperwork. FWIW, something isn't quite adding up if your numbers are accurate.

[miramar]

Thank you. I'll give it a try.

[LadyInTheRed]

It's impossible for us to tell what adds up without knowing the term of the loan, interest rate, how long and by how much you were delinquent and how much in late fees were added. Payments on a mortgage is mostly interest in the beginning. If it's a 30 year mortgage, you wouldn't pay a lot of principle in the first 11 years. But, I did run an amortization of a 30 year loan at 6% and after 11 years of on time payments, the balance would be $77,000. Since you were 6 years into your loan when you filed BK and the claim was $100K, I changed the term to 24 years and the balance to $100K and the balance after five years is just under $89,000. So, owing $87,000 does seem about right if the assumptions I made are in the ballpark.