Resuming Mortgage Payments after 13

[raingirl]

Hello to everyone! i have been a longtime lurker, but this is my first post.

DH and I mailed our 60th and FINAL payment on our Chapter 13 case to the Trustee this week. This is an especially sweet victory for me, because I am very ill with terminal cancer and one of my goals was to live long enough to get out of the BK so that DH wouldn't be saddled with it alone.

Here are my questions:

How do I know when to resume making our mortgage payments, which have paid to Wells Fargo from our plan for the past five years?

Will there be fees or add-ons or penalties of any kind from WF, or will we be able to just begin sending our regular mortgage payment again?

We have worked so hard to complete this; I certainly don't want to get behind on our mortgage again right out of the gate. But I do know that most mortgage companies won't accept direct payments when you are in an active Chapter 13.

Thanks for all of the help you have given me in the past, and for your insight on these questions.

Sincerely,

RainGirl

[justbroke]

First, congratulations and I'm sorry to learn of your deteriorating condition. But kudos to you for not wanting to saddle your spouse with debt...

How do I know when to resume making our mortgage payments, which have paid to Wells Fargo from our plan for the past five years?

Immediately starting with the 1st of the month following your last payment to the Trustee. Many Chapter 13 debtors forget that they must resume payments directly with the lender after completing their plan payments. This gets them in trouble!

You may want to contact the lender to determine where to send the payments!

Will there be fees or add-ons or penalties of any kind from WF, or will we be able to just begin sending our regular mortgage payment again?

This is a hotly contested matter! If you completed your plan then there should be no arrearages caused by post-petition and pre-discharge/close issues. There are sections of the BK Code that deal with this, but most (modern day) Confirmation Orders contain text indicating that such fees are not allowed. However, see my first response. You must begin making regular payments after your plan is completed.

[arkienurse]

well, welcome out of the lurk. So sorry about your health. I would call the bankruptcy department of Wells Fargo and ask them how to handle it. I know they wouldn't reopen online access for us until the bk was completely discharged. If they cannot help, then contact your lawyer or trustee.

Will be remembering you and your family in my thoughts. Unfortunately cancer has played a role in my family also.

And congratulations on making it through your 13.

[pcn]

Raingirl, congratulations, and good luck. I cant say "I'll pray for you" because I recently realized that saying that isn't very committal. So I'll tell you that I just prayed for you and your husband.

[raingirl]

Thanks for the warm welcome, everyone!

I've been battling cancer for nearly nine years. I make it a point to live one day at a time and to enjoy every moment that I have. Cancer has kicked the snot out of me physically, but I am content and thankful to still be here with DH and our kids.

Medical debt, dh's factory moving the jobs to China, and my inability to continue working full-time due to my health were actually the reasons we filed. We had always been very frugal and did not have credit card debt. We were in arrearage on the mortgage, but it was paid out of our plan. I stupidly put the mortgage off in order to pay the medical bills (to stop the constant calls and notices). One of the things I have learned here is that the mortgage comes FIRST, and then everything else. Seems obvious, but I just wasn't thinking straight.

So, Wells Fargo will accept a payment from us before the Ch 13 is actually discharged? They will just take me at my word that we are finished and it's time to send the payment directly to them again? I guess that's what I am wondering.

Thanks again!

[justbroke]

So, Wells Fargo will accept a payment from us before the Ch 13 is actually discharged? They will just take me at my word that we are finished and it's time to send the payment directly to them again? I guess that's what I am wondering.

Your best best is to immediately contact the Bankruptcy Department at WF and ask them. Make sure you inform them that you completed the plan payments, and need to resume regular payments. They should be more than happy to take your... I mean... help you.

[raingirl]

I hope this doesn't qualify as dredging up an old thread , but I always like to hear the resolution of people's questions, so I thought I would give an update.

I called WF and explained the situation and they said that they will accept our mortgage payments. I mailed the first one today, along with a letter from the trustee stating that our mortgage is current through 02/09 and that we needed to make the payments directly to WF beginning 03/09.

So, now I have my fingers crossed that WF will accept it without issue.

Also, my attorney's office called to say that they routinely audit the mortgage account to make sure that all monies were applied correctly and that the mortgage holder is not trying to charge any additional fees.