2nd mortgage question

[schel]

Can we roll our 2nd mortgage into our Ch 13? Has anyone done this?
Schel

[253BK]

You can include the payment in your plan but not the overall debt! If that was the case everyone would do it and pay back the small % instead! Good thinking though!

[lrprn]

Can we roll our 2nd mortgage into our Ch 13? Has anyone done this?

You don't want your trustee paying your primary or your secondary mortgage payments every month. The trustee takes a % of the payment as a part of his/her administrative fee. You'll be paying more in the long run than if you make the payments directly to the lender yourself.

Trustees can and should make payments to catch up mortgage arrears. However, unless there are extenuating circumstances, you should make your own mortgage payments yourself.

[schel]

Thanks.
Schel

[triednotto]

Just curious....I live in Missouri Lrprn and your post has me wondering....I have a truck at 0% loan. I was told I had to have the trustee pay for it???? They also pay my house payment... I really was upset about this as you state: The trustee takes a % of the payment as a part of his/her administrative fee. You'll be paying more in the long run than if you make the payments directly to the lender yourself.

How do you get it so you paid for your house yourself?

[MOMof3]

We had arrears in our mortgage, and in our district, that means mandatory trustee payments for mortgages. I think all districts are different. I've heard of some being able to just pay arrears within the plan, but our lawyer said that wouldn't work for us. We also were forced to put my van in the plan, even though we were current, because it would be paid off within the first 24 months of the plan (actually within the first 10 months)---this is the rule where we are. I would have rather paid off the van and then kept that payment amount monthly. As it is, the van is still not paid off because they aren't paying as much per month. We are going to refinance our home eliminating our arrears & bringing us current--I've asked my lawyer if we can now make our payment outside of the plan, but I haven't heard back.

[253BK]

I think that is possible if you arent behind/In Default Think of the extra money you have to pay say your debts paid by the trustee are 3200$ and they take 3% it is only 96$ more monthly and it might keep you on track and help out!

Of course each state is different

[schel]

I contacted one lawyer and he wants to do CH 13, us loosing our 5th wheel, keeping our truck and home since we are current on payments on all. I talked with another lawyer and he said we qualify for CH 7 and could possibly keep our 5th wheel. So it's a work in progress. I will keep you all updated. We meet with the CH 7 lawyer before the CH 13 lawyer. Who knows. I guess thats why you get more than one opinion.
Schel

[southernbelle]

Even if it costs more in the long run, could including the 2nd mortgage in your Ch. 13 payments eliminate cross-collateralization if you have other debt with that mortgage company?

Since it is a mortgage, does that company have the option of adding the other debt to the back end of the mortgage even though you filed a Ch. 13 if they aren't paid back at 100%?