Mortgage lender sold loan

[Scottowl]

My loan was through Chase, who sold it to Carrington. This changed over May 15th. I am current, other than last months payment.

I don't know much about Carrington, other than they would not take my payment last month, because I was 'not in their system'. I found this out when I called them about the 20th or so.

I called today and was told it may be 90 days until my account would show up. They could not tell me if the payments, due date, etc. would remain the same.

The phone operator told me I could make a payment, but did not have to until I started getting statements. They also said I may or may not be foreclosed on.

I do know that if I hold back the payments and have funds ready when I do get a statement 90 days is not enough time for them to evict. However, they have already sent mortgage assistance forms, and the online account I set up shows the loan has not been paid since January 2019, which was about the time Chase modified the loan.

All this brings up some questions:

Am I violating my Ch 13 plan by waiting until I start getting statements?

What if I decide to surrender the house? I know the loan is dischargable, but what about funds in my plan that go towards mortgage arrears?

Honestly, I have battled with myself whether or not to surrender this place. I thought I was clear with myself on staying, until this happens. On one hand, it is a familiar rut. Then again, it will need repairs such as heating/cooling, new siding , and all new doors and windows. The loan balance is 106k, which is close to the value of the house if all work was done. I have priced materials at 20k, and I would need some help getting it done. I'm pretty handy, and can do most work.

Then there are the bad memories of a failed life. My ex-wife(now deceased) was here. She had to go to a nursing home, and I divorced so she could get better financial aid. I was a wreck, and allowed some (not the best) people to stay here, and whatever they didn't steal they trashed. I know I'm to blame, but I was in a real bad place emotionally, and not really strong enough to stand up for myself.

I feel like letting it go, retiring at 62, and converting to Ch 7. That would be a disaster, as I am relying on the last few working years to get some money in my 401k. There is only about 10k there at present.

I am alone in life, and really struggle to make good decisions. I don't know if I could even rent a place with my financial circumstances at present.

Hopefully I am getting all worked up for nothing. I swear I am going to be a stroke victim over all this, if COVID doesn't get me first.

[justbroke]

Am I violating my Ch 13 plan by waiting until I start getting statements?

Technically, yes, but generally the creditor would need to complain to the Trustee or file some sort of motion to get anyone's attention.

What if I decide to surrender the house? I know the loan is dischargable, but what about funds in my plan that go towards mortgage arrears?

The creditor would become an unsecured creditor and they'd need to quickly liquidate/foreclose so that they can file an unsecured claim (technically update their existing claim) so that they can get paid from the unsecured pool. In most cases, a creditor that holds a claim from a foreclosed home usually has the largest unsecured claim.

Then there are the bad memories of a failed life. My ex-wife(now deceased) was here. She had to go to a nursing home, and I divorced so she could get better financial aid. I was a wreck, and allowed some (not the best) people to stay here, and whatever they didn't steal they trashed. I know I'm to blame, but I was in a real bad place emotionally, and not really strong enough to stand up for myself.

I always ask people to take the emotion out of the decision and just look at the numbers. The numbers never lie.

I feel like letting it go, retiring at 62, and converting to Ch 7. That would be a disaster, as I am relying on the last few working years to get some money in my 401k. There is only about 10k there at present.

It's a tough decision when you're at retirement, but you have to think about whether what you're doing now is worth it in the long run.

I am alone in life, and really struggle to make good decisions. I don't know if I could even rent a place with my financial circumstances at present.

For what it's worth, I've had zero issues renting from major national apartment management companies... in places where rent is above $3,000/month. That was even while I was in an active Chapter 13. The credit score matters most (along with a lack of evictions).

Hopefully I am getting all worked up for nothing. I swear I am going to be a stroke victim over all this, if COVID doesn't get me first.

You forgot Carole Baskin and Murder Hornets!

[shipo]

I feel like letting it go, retiring at 62, and converting to Ch 7. That would be a disaster, as I am relying on the last few working years to get some money in my 401k. There is only about 10k there at present.

I totally get the whole being at retirement age and needing to stoke the 401K thing, I was 62 when my Chapter 13 ended earlier this year and am contributing as heavily as I can at this point. My question to you is, can you "retire", go on Social Security, convert to a Chapter 7, live through until the discharge becomes final, and then start looking for another job (or possibly asking for your old job back)?

[melly55fl]

Scottowl I have no words to help you make that decision but I can tell you I went back & forth on giving up/or Chap 7 covert for many months. Its a decision that only you can make but I can say now that I'm 34 months in I'm glad I stuck with my 13. Mind you my payments are $2880.43 I'm retired disabled vet awarded my SSDI last year which of course made things better, my payment drops by $300 in Aug 2020 fingers crossed the last two years go by with no issues. I agree with justbroke numbers don't lie you'll know whats the right move for you! Best of luck!!!