Laid off-Mortgage company says my Chap 13 BK makes me ineligible for a Forbearance

[Golden14]

My mortgage company is offering a 3 month forbearance relief program, to their customers whose jobs have been shut down due to the COVID-19 Virus. I'm laid off from one of my jobs, so I'm living on less than half of my income right now. But they told me the only reason I don't qualify, is because a person going through a BK 13 can't sign a forbearance repayment agreement. So basically they have nothing to offer me. I asked him if there was a way that I could get some type of waiver where I could at least skip paying my mortgage for a month, and he said they have nothing to offer me.

He also said that since I'm going through a BK 13 there's nothing they could do to me anyway if I stopped paying, and that they can't report it to the credit agency. So basically it's up to me if I want to stop paying for a month, or send a partial payment. But I read that if you're going through a BK 13 and miss a payment that the mortgage company can petition the court, to foreclose on your property. So I don't believe I can just skip a payment, without them agreeing to it beforehand. It seems they would have something in place to help people going through a BK 13, to also get some type of mortgage relief. I pay my mortgage company directly the full amount each month, outside of my BK 13 payments. I've never missed a mortgage payment, and wasn't behind when I filed my BK13 either. I actually hadn't even planned on including my mortgage company in my Bankruptcy, but when they found out I filed they petitioned the court and included themselves in my case. Then they added $1,100 in Attorney fees to my mortgage balance, for including themselves in my case. So I was already a little ticked at my mortgage company, on how they've been acting towards me since I filed for BK 4 months ago. Has anybody going through BK been successful in getting a forbearance from their mortgage company?

[Faith527]

Hi Golden, I will be watching your thread and you will get excellent advice from those well versed with Chapter 13. Fyi, we were chapter 7 and also have 1 layoff to date.
I just want to wish you the best figuring it out and somehow we can get hep each other get through this together.

All the best and keep your physical and mental health in check.
Faith.

[Golden14]

Hello Faith,

I feel like my mortgage company has been treating me with consideration and respect, from the day they found out I filed bankruptcy. I've been with them over 4 years and never missed a payment, and could freely call and ask them questions about my account. After they found out I filed for a BK13, they wouldn't answer any of my questions pertaining to my case until I got written permission sent to them from my Attorney. I now wish I would've included my Mortgage company in my BK 13, so maybe at least I'd have some relief with my mortgage payment instead of paying them in full every month.

It's strange seeing all these business closures, bare store shelves, people walking around with masks and gloves on, etc. I hope things will get back to normal soon. It just makes you realize the simple things we take for granted everyday, like just having the freedom to go wherever you want, and to pick up whatever you want from the store. I've heard about the increased amount of cases in New York, hope you and your family are safe.

[sophieanne]

Golden14 - hi and I’m sorry for the situation you’re in. When I was going through my chapter 13 I had conversations with the bk contact at the bank who had my mortgage. I was told that because I was paying it myself (but still part of the bk plan) they would follow the wording of the mortgage document and not report any nonpayment till the 90 days when they would start foreclosure proceedings . I hope you can find a way to make things work.

[shipo]

Talking about COVID-19 and folks being "out"; on Friday afternoon I took a 6-mile hike out to a point in a lake nearby where we live; I've hiked or run this trail literally hundreds of times since we moved here seven years ago, and prior to Friday, the most folks I've seen out there on any one day numbered less than a dozen; Friday the count tallied about 20. My wife and I repeated the hike yesterday and we were stunned by the number of people; I counted 111 (yes, one-hundred and eleven) in the six miles!

In other news, when our economic meltdown occurred and we lost our house back in 2013, my wife and I rented a small "Caretaker apartment" on a 70-acre family horse farm with 3-generations of said family living here; the daughter of the founders, and mother to the three girls I work with most often in the barn has been sick for a week now. Today we found out she tested positive for COVID-19, yikes! The good news is the rest of us are feeling pretty good and the patient is on the road to recovery, so here's hoping we all get through this.

[justbroke]

I think that this pandemic is going give rise many unique situations. There is likely nothing addressing this in any policy manual. It is very likely that the impact of all the various financial concerns will still be dealt with years from now.

[womanonfire]

Hello Faith,

I feel like my mortgage company has been treating me with consideration and respect, from the day they found out I filed bankruptcy. I've been with them over 4 years and never missed a payment, and could freely call and ask them questions about my account. After they found out I filed for a BK13, they wouldn't answer any of my questions pertaining to my case until I got written permission sent to them from my Attorney. I now wish I would've included my Mortgage company in my BK 13, so maybe at least I'd have some relief with my mortgage payment instead of paying them in full every month.

I'm glad that you have a great relationship with your mortgage company but business is business and at the end of the day, they will do what is best for them and you should too. I don't know why you can't add them to the bankruptcy. And what they may be telling you about the forbearance could be BS. The very best way to deal with mortgage companies is by sending them a Qualified Written Request ("QWR"), Notice of Error ("NOE") or Request for Information ("RFI") through RESPA. If they mess up, they may owe you unless of course they file for bankruptcy themselves but that is another scenario for another day lol.

[Golden14]

I meant to say my mortgage company used to treat me with consideration and respect, before they found out I filed for Bankruptcy. Now they're acting funny about everything, since I filed for a Chapter 13 Bankruptcy.

[womanonfire]

I meant to say my mortgage company used to treat me with consideration and respect, before they found out I filed for Bankruptcy. Now they're acting funny about everything, since I filed for a Chapter 13 Bankruptcy.

Sorry to read that. I would still send a Qualified Written Request, Request for Information or Notice of Error as applicable to your situation, under RESPA.

[Carmella]

Golden14, you can also ask your attorney for advice. I deal with a bank that is based out of my state and they have a bankruptcy department who have been helpful. I have been late a few times since we started our Chapter 13 because my pay day does not always align with the mortgage due date and because we have a rather large bankruptcy payment that takes almost half of my regular paycheck (not my husband's and not my variable pay from second job which ranges from 0 to around $500). We also have car payments and regular bills that are due around the same time. I had never been late before we filed for bankruptcy and I hate being late, but sometimes we just don't have enough money unless we don't want to eat, get gas or keep our internet running or pay house/car insurance. My bank told me if we are late they can't charge fees, but the interest will accrue.

[sophieanne]

Golden14 - I totally agree with Carmella. Talk to your attorney and see if the bank has a bankruptcy person you can work with. I, like Carmella, had to work with my bank a couple times, and they were most helpful. They really want you to pay, so they will probably work with you (especially now)

[Slipp20]

First timer, here. I'm new to the forum. Thanks for having me.

Piggybacking on Golden14 and Carmella, definitely ask your attorney what can be done in this case. I do know that all foreclosures and evictions are halted for 90 days in Florida. I don't know if that's nationwide or not, but they cannot do anything in that time period.

My attorney recommended I include my mortgage in my Ch 13 even though we were current as well because in his words, "a lot can happen in 5 years." I pay my mortgage through my plan. Even if you're paying outside of your plan, because your home is included in your BK, I would think your attorney could help you. I reach out to my attorney at least once a month with questions. That's what I pay him for, so let him/her help you. Best wishes. I will say a prayer of provision and protection for you today, and that the peace that passes all understanding would fall on your spirit.

[omanyweather]

Hi Golden14 and all! I am about to file a Ch13. I started my mortgage relief in April and I have a year. My mortgage is to be included with my payments. I read about the Cares Act and I have it fixed where my payment will be short $2374 until April. I can't see them not helping you if it's supposed to be the law that you are able to receive the relief.