Mortgages in arrears

[Itried]

I have some mortgage payments that are about 6 months late and I still don't have a sale date on a investment property in California, received my Notice of Default filed 9/26/07.

When should I expect my sale date? My mail takes about a week and I have someone watching the door to see if they post a notice.

My other question is that if I file for a 13 and I am paying my unsecureds at 100% could the mortgage companies come back to me with a deficiency balance? And would that deficiency balance become an unsecured debt and be added on to my plan?

[rrockinggramma]

Once you file a chapter 13, creditors are given a "bar date" to get their claims filed. Ususally 3 months for unsecured and 6 months for government. If in the 3 month time frame, your mortgage people do NOT file a claim for deficiency, it is discharged at the end of your plan. If they do file a claim, then you probably won't be paying your unsecured's back at 100 percent, depending on the size of the deficiency since chapter 13's can run no longer than 5 years.

[Itried]

Thanks for the information!! Also can they adjust your payment after the 6-months if they do file a claim? The reason why I am asking is that I don't have that much unsecured debt and my payment can only be so much to spread over the 3-5 years, but I will have about $1500 disposable income. So if my payment was set at $600 per month, could they adjust the plan and come after me for the other $900 for the deficiency balances?

[rrockinggramma]

Your payment can change up until confirmation of your plan, which is usually the 3 months after filing (at least it is in michigan)The trustee could accept a late filed claim but there would have to be a really good reason as to why it was late. Most of the time, a company would file a claim on an estimate and then readjust it when the figures come in. If you have enough disposable for 100 percent payback and then a claim is filed that you couldn't possible pay back at 100 percent in the time frame, then your attorney can amend your plan to lower your payback to the unsecured to make the plan feasible. Hope that makes sense. LOLOL

[lrprn]

Let's be sure we are all on the same page here.

You include the mortgage debt when you file Ch 13. In most plans you will continue to pay your mortgage payment(s) yourself throughout the plan (3 or 5 years). The trustee typically pays any arrears to your mortgage company out of your monthly payment if you had arrears when you filed.

Your plan will include the monthly payment you make on the day you file as an expense. If your plan is confirmed, this is the amount you will always be expected to pay yourself unless your mortgage is an ARM and adjusts periodically. Then at adjustment time if the increase is significant your lawyer can file an amended plan to cover the increase in payment. However, every time you amend your plan, your creditors have another opportunity (usually 30 days) to challenge your discharge of their debt.

You are not going to emerge from Ch 13 without a mortgage payment unless you owe so little now that you can pay off your mortgage(s) in full before your plan ends.

[253BK]

So if you are a month or 2 behind at the time of filing most chap 13 will allow you to catch up and put the payment into your chap 13 payment??? Then continue to make the regular mortgage payment to the finace company???

just want to make sure I understand this!

[rrockinggramma]

yes