Chapter 13 Advice.

[steve2008]

Can anyone please give me and my wife some good orderly advice on this Chapter 13 mess we see happening before our very eyes on paper with the crazy numbers reported by one of our creditors.

Me and my wife filed a Chapter 13 Bankruptcy in April 2006 in Shreveport La.The case is for 48 months.Our Chapter 13 Trustee is paying our Mortgage Servicer $496.12 a month.We have paid faithfully August 3rd will be our 28th payment.$496.12 comes out of our $668.00 payment to our Trustee and goes straight to our Mortgage Servicer .

#1.Our mortgage servicer`s claim 1st claim amount. when we filed $24,309.00 in April 2006.

#2.Our mortgage servicer`s claim 2nd claim amount.when we filed $2,321.00 in April 2006.

#3.100% of our mortgage servicer`s claim`s to be payed on both by our Trustee equals $26,630.00.

#4.Trustees yearly periodical report June 6th 2007 showing payed into our mortgage servicer`s claim equals $6,793.43.

#5.As of June 6th 2007 balance owed to our mortgage servicer equals $19,836.57

#6.Trustees yearly periodical report June 6th 2008 showing payed into our mortgage servicer`s claim equals $6,632.11

#7.As of June 6th 2008 balance owed to our mortgage servicer reported by our Trustee equals $13,204.46

All of the above remind you is our Chapter 13 Trustee`s yearly periodical reports since we have been paying into our plan faithfully since in April 2006.

Our Attorney ordered us to keep our own personal homeowners Insurance to cover up to our mortgage servicer`s claim that covers up to the $26,630.00 that was their claim or they could file a motion to lift the Automatic Stay.Me and my wife has faithfully payed into our case and have faithfully kept homeowners Insurance that will cover up to $30,000.00 in loss.

We believe the mortgage servicer has violated the court`s Automatic Stay by sending monthly statements that show the following along with RETURN ENVELOPES.

#1.Our mortgage servicer`s monthly statements do not reflect the balance of our Trustee`s periodical reports.Our mortgage servicer`s statements show a principle balance owed as of July 24th 2008.$21,986.23

#2.Our Trustee`s peridical report for June 6th 2008 shows a balance owed to our mortgage servicer of $13,204.46.

#3.Our mortgage servicer`s statement as of July 24th 2008 shows a principle balance again owed of $21,986.23.

#4.The difference of the Trustee`s periodical report and our mortgage servicer monthly statement both are only roughly a month apart but still shows the mortgage servicer`s claim is still $8,781.77 more than our Trustee shows we owe.Where did this $8,781.77 vanish to?

#5.There my friends is a huge difference here as you can see.Our mortgage servicer on the monthly statements they send has an Escrow account all over the place.I see our mortgage servicer`s in some type of violation with their crazy numbers on the statements they send us.It seems our mortgage servicer, only applies to the principle balance of what they see fit and pocket the rest.I see our mortgage servicer holding money out for an Escrow Account on our account for their own personal Insurance and property taxes that me and my wifes home is EXEMPT FROM PROPERTY TAXES.

I also see illegal interest being charged here of almost 12%

#6.Me and my wife keep our own homeowners Insurance and we pay it monthly and faithfully and when it is time to renew it we fax our mortgage servicer a copy of the policy and proof we are TAX EXEMPT,but they continue to ignore the proof and continue with their criminal illegal robberies even under the Federal Governments rules and regulations.

I wanted to ask someone what is your opinion of this crooked mess and what could you advise a disabled man on a monthly fixed income to do?

How can the Trustee report to us show relief coming, and our mortgage servicer I believe to be in violation of the Automatic, stay report to us no progress coming?

Do I carry this complaint to my Bankruptcy Lawyer and will he charge me?

I can`t afford to pay my attorney $200.00 an hour.He has been payed over $2500.00 already through our Trustee.The job is not finished and my attorney has been payed.


Thank you for you much needed help.

Thank you.

Steve2008.

[arkienurse]

Oh man. I have no idea. I would call my lawyer and tell them what is going on. It might be worth a little bit to get it all settled.

[BigJohn]

I am handicapped/disabled. From what I see, some people realize you can not afford a lawyer so they do a lot of nasty stuff.

Can you qualify for legal aid?

My next step is to see if your lawyer can straighten this mess up and see if he can charge the other part(ies) if they have made violations.

[steve2008]

Hello Big John.

No legal aid is out of the question.My wife works and no matter how much money you pay out here they look at your income not your outcome.I sent my attorney a letter a while back complaining of this matter,but still today haven`t received a reply from him.

Also I was reading of someone that went through the same thing I am but was not aware of it until after her discharge and they had to pay big for foreclosing on her home after her discharge from the debt.It seems even though I am paying the claim amount back 100% they will try to surprise me with bogus interest fee`s ect.I thought that under a chapter 13 bankruptcy the debtor was protected from interest on the claim???

I will do my best to surprise them before my plan is complete.

I was wondering if there is a complaint form for alleged violation of the automatic stay and who do I send it to?

I have emailed several bankruptcy firms asking this question and either they are ignorant as I am about it or they just dont want to respond with an answer???

Thank you.

Steve2008

[rrockinggramma]

I would contact your attorney and copy the letter to the trustee and to the mortgage servicer demanding an accounting of the payments by the trustee and how they were applied to the mortgage. I have seen many times where people complete their plan and find out that they still owe thousands because the mortgage company applied the monies to "late fees" and interest and not to the balance claimed. I would be on top of this. Send letters RRR

[steve2008]

RRockinggrandmma.

Thank you.

If I contacted my mortgage Lender with a Respa request as evil as they are they would probably file a motion to lift the automatic stay saying I violated by contacting them.

The predatory mortgage servicers are very well trained in every illegal trick in the book to rob you and even to get you so angry to cause you to die of a massive heart attack as the evil devils did my 61 year old mother in March of 2006.

I was also told I can`t contact my Trustee dealing with legal matters or he would file a motion for a discharge???

It seems my Attorney will not return a responce by snail mail unless it is to remind me to send them a copy of my tax return for my Trustee or to send them a copy of our yearly home owners insurance renewal.

I am doing my best not to give any excuses for the Trustee to file a motion for discharge nor give my mortgage servicer a excuse to trick me so then can file a motion to lift the automatic stay ect.

I am quite sure someone here in this forum has the knowledge of a step by step plan in order for what I need to do.Just praying and waiting.Forgive me of my ignorance.

I think it is good that I am aware of this 21 months ahead of time and do have time on my side to like larry the cable guy would say GIT-R-DONE.

Thank you.

Steve2008.

[casdem1]

Who holds your mortgage? Mine is HSBC and I am confident they will do the same thing to me as what you are describing. I did read about a mtg company that had to fork over millions in a lawsuit for racking up all kinds of frivolous charges and fees to a person in a chapter 13. I wish I could remember the name of the mtg company.

[lrprn]

I did read about a mtg company that had to fork over millions in a lawsuit for racking up all kinds of frivolous charges and fees to a person in a chapter 13. I wish I could remember the name of the mtg company.

One recent notable Ch 13 debtor vs mortgage lender case is Jones vs. Wells Fargo (although this case did not cost Wells Fargo millions - just about $100K when the dust settled).

Here's the link to Part 1 of 6 describing the case - http://www.************************/...ptcy-part-one/ . The link to the next page is at the bottom of each webpage.

This article should be required reading for every Ch 13 filer who keeps their house with or without reaffirming after filing. The financial games being played by mortgage companies while filers are in Ch 13 can be very hard to spot. This article helps know what to look for when your mortgage company is quietly screwing you behind the scenes.

[steve2008]

Casdem1.

My deed holder is The Provident Bank d/b/a PCFS Financial Services Inc.An Ohio Corporation as registered in my county Court house.Yes these crooked Mortgage servicers so-called rob you while you are under a bankruptcy.They do not apply what the Trustee is paying them to their claim.

My research is showing just how these crooked criminals conduct business.

#1.During a bankruptcy it is our right to a Respa request to compare with our Trustee`s yearly periodical reports.

They will surprise you when you least expect it upon discharge.

[BKParalegal]

As a former employee in the default servicing department of a large bank, I will tell you this. Most banks at one time and some still are not equipped to handle Chapter 13 payments in a seemless fashion. In short I will explain, some BK districts around the country have the debtor pay the arrears and the current mortgage all within the Chapter 13, some just the arrears, and then pay the current direct. Some are set up in a pro-rata payment, meaning the debt in the Chapter 13 plan is paid a portion at a time starting at some point in the term of the BK, some are paid fixed, where an exact amount is paid to the creditor every month. Lastly, if you are in a district where you pay your current mortgage in the Chapter 13 plan. This does not mean the Trustee sends the payment every month. He is pools that money and can uses it to pay Class 1 debt ( Attorney fees, IRS, etc.) and then when they are paid first, then he sends money to the mortgage company. There are some districts where I would get 2 checks from the trustee, 1 check for the current mortgage payments, and 1 for the arrears. Problem is there was no explanation for each check, I would have to figure out what goes where. And it wasn't like the current mortgage check matched what the current payment was. Sometimes it would be a payment and a half. So what would I have to do?? I would use what I could to make a payment and put the rest into your ESCROW account until there was enough to make another payment. Also, the bank software might be smart enough to stop charging late fees regarding the arrears that were put into the BK, but it was not tailored to know each states rules on paying the current mortgage payment, and so it would charge a late fee, if the trustee didn't send your payment on time. We had to audit those accounts and back out the "erroneous" late charges. The reality of it with the banks is that less than 40% of all Chapter 13's complete their plan. So when it came time to an actual discharge, we would audit the mortgage and fix all the problems based on the original claim so that everything was paid accordingly. When you are within the last 90 days of your Chapter 13, that is when I would request a payment history of your mortgage and see where they were at.

Good Luck!

[Flamingo]

I just had the chance to read your initial posting Steve...Your mortgage holder apparently has no BK section as most mortgage lenders have. When a BK is filed and a mortgage is involved, that mortgage will get sent to that mortgage section. It almost always has a different address than where the original mortgage payments were sent. Your trustee would have been given that information by your mortgage lender as to where to send the payments since your Trustee is making the payments.

Since the trustee is making these payments for your and his records are showing receipt of your payments and a running correct account of payments made to the mortgage lender, someone at the mortgage lender is not either getting these payments or is not posting them correctly. Your attorney should be working with your trustee to get this squared away and there should be no added fees involved. Your Trustee needs to know what is going on as to what you are receiving from your mortgage lender so this matter can be looked into. Since your trustee is making payments for you, every time you receive one of those letters from your mortgage lender, the attorney should be given a copy and I would also send a copy to the Trustee with your case number noted on it.

May I suggest that you make copies of the recent correspondence from your mortgage lender and a copy of your most recent statement that you have from the trustee and hand delivery it to your attorney's office (sending a copy to your trustee also) and demand immediate attention to the matter. The trustee will not deal with you directly since you have an attorney but the copy to him may prompt some action.

You are protected by your Chapter 13. This will get resolved and corrected. You have no concern because you have made all your Plan payments on time and in full and have complied with your Plan requirements.

[BKParalegal]

Not true Flamingo, in regards to working with the Trustee. They have neither time nor th patience to do this, which is why they have all your information on pay schedules on their website. It only has to do with the mortgage lender. The mortgage lender is bound by the Proof of Claim they filed. If they screwed up and filed the wrong amount, it is too bad for them, if an only if you complete your Chapter 13 plan. Matter of fact, if you do complete your plan, and they don't release their lien on your home, then there may be some lawsuit money in it for you. I wouldn't get worked up until you are on the home stretch.

BKP 1, FLam 0

[Flamingo]

Not true Flamingo, in regards to working with the Trustee. They have neither time nor th patience to do this, which is why they have all your information on pay schedules on their website. It only has to do with the mortgage lender. The mortgage lender is bound by the Proof of Claim they filed. If they screwed up and filed the wrong amount, it is too bad for them, if an only if you complete your Chapter 13 plan. Matter of fact, if you do complete your plan, and they don't release their lien on your home, then there may be some lawsuit money in it for you. I wouldn't get worked up until you are on the home stretch.

BKP 1, FLam 0

May I ask what "BKP 1, Flam 0" represents? I did not post to the OP in competition with you, I posted direct to the OP. Let's have some class, shall we? If the OP is getting letters and other correspondence from his mortgage company over the past two years, by all means since he is represented by an attorney and his mortgage payments are being paid by the trustee to the mortgage lender he needs to get that correspondence in to get straighted out by the attorney and/or trustee. He is protected under the filing, as I stated, and the OP has nothing to worry about. However, he paid for reprensentation and is entitled to get things straightened out as it is not his fault and apparently has had no reassurance or contact about this, just a listing that his payments were received by the Trustee. You say trustees neither have the time nor patience to do this - that is a blanket statement and cannot be considered as many do and many don't. It is not right for the OP to continue to receive two years of misinformation from the mortgagor and it is his right to have it looked into.

[steve2008]

The statements from our mortgage servicer has a special BankRuptcy Department.Our mortgage servicer`s claim is to be payed 100%.The Trustee is sending them $496.12 a month and our mortgage servicer`s statement`s prove they are getting payed monthly by our Trustee.Our Trustee`s report tells a totally different story in reporting than the mortgage servicer.

Their biggest mistake is where they send out statements with return envelopes in the 1st place.This is clear evidence they are expecting you to send them money.WRONG and this is a violation of the Automatic Stay,no way out of it.Case after case has been awarded big money because of this very same thing happening to me and my wife.

These statements come with a return envelope.One bankruptcy Attorney has on his website in maine that if his clients get statements with return envelopes this is clearly an intention to collect on the debt outside the bankruptcy and he will prosecute them to the full extent of the law.

My Attorney wants an extra $200.00 an hour to help me even though he has been payed almost $3000.00.Monday I am seeking Legal Aid because I do qualify according to their standards.I will be doing a Respa request that the mortgage servicer will either produce detailed transactions or pay the penalty.

I will see my Attorney face to face with my Trustee Periodicals along with my mortgage servicer`s statements.I am going to file a complaint with Hud.If my Attorney has wronged me I will sue him along with the rest of the crooks.

I have a great deal of money coming off a settlement where I lost half the funtion of my middle left finger in December.

Money is all they want and when you do not follow the rules you pay big.It only seems right that if they break the rules they should pay big also.

The mortgage servicer is getting payed 100% of their claim an nothing more and nothing less.Discharge means discharge and if I am paying them 100% of their claim that means just that.If I was paying a car note and payed it off what difference would it be for them to send me a statement demanding another $5000.00 they just so happened to forget?Criminal Fools is what they are.

I have looked at the periodical`s very close and some of my debts have zero balance owed because they were payed 100% of their claims.They have not contacted me wanting some more money.100% is 100% not 100% of a claim to be payed with another 100% after discharge.This is the most illegal trick in the book which this old poor boy will not tolerate.

Thank you.

Steve2008.

[BKParalegal]

The information on your pay schedules on the Trustee's website are your best weapons. I guarantee your attorney won't be able to decipher the mortgage statements any better than you, so save your money. Again, you have the Proof of Claim as your ally, it really doesn't matter what the Mortgage company says, as long as they can 100% of the POC, you are golden.

Good Luck

BKP2, Flam 0