Got a notice from my mortgage company...

[rpg1977]

So, my mortgage was never late, so it is being paid as normal "outside" the plan. Anyway, regardless, the mortgage company sent me a letter today saying that I am no longer allowed to use their "PayPlan 26" where they draft half the payment twice a month. I don't understand what difference that makes. I suppose they are worried they won't get their entire payment each month. That's a bummer. It was so nice having half the mortgage come directly out of my checking account twice each month as I have been for the last 2 years.

So now, I have to mail a check once a month like in the old days, LOL! The sorta good news is that we were always "one payment ahead", so I technically have no payment due until Sept 1.

I'm starting to see how filing affects other things..even if its not that big of a deal.

[Ifonly]

I think they do it just to be jerky or "shortsighted" as my attorney calls it. We're paying Toyota Financial for a car right now and we pay on time, etc. Same deal, sent the lawyer a letter that if we're paying by automatic deduct they'll stop it and they won't send statements anymore, etc.

[BkinTX]

I had the same thing happen to me (Bank of America).

Since we switched banks when we filed, our new bank deposits DH's check a few days earlier than normal so I pay the full amt "late" but within the grace period. I pay over the phone bc I don't want to end up with late fees.

Our mortgage had been with Countrywide. A few months after BoA bought our mortgage, they pulled a late fee from several months ago (when we were with CW) that was not on any of our statements out of our acct without permission.

Douche bags.

[rrockinggramma]

many institutions do this while you are in bankruptcy because they don't want to be accused of "trying to collect on a debt" and they also do it to irritate. Lots of times, all online account access is denied also.

[AngelinaCatHub]

There is no reason that you cannot pay twice a month the one half payment. You have a great interest advantage when you do this as interest is charged on a daily basis. Just mail the check in (with the account number on it of course) at the times you are used to. They must accept it. They know this little bit about the interest advantage and are attempting to knock you out of it. CC's HATE people who pay the whole amount every month because they cannot charge interest on them. 'Hub

[rpg1977]

I think I may do that! That is an awesome idea! Thanks!

[BkinTX]

Bank of America will not accept partial payments.

[oldhack]

There is no reason that you cannot pay twice a month the one half payment. You have a great interest advantage when you do this as interest is charged on a daily basis. Just mail the check in (with the account number on it of course) at the times you are used to...

If you read your contract carefully, you'll note that regardless of when you pay, the payments are applied on the date your selected schedule specifies. For example, my payments to Countrywide/BoA are applied to my mortgage on the 1st of the month. If I send them a check mid-month, they'll just hold it till the 1st. Even regular, extra-principal payments are handled the same way -- applied on a single, specified date monthly.

[StartingOver08]

If you read your contract carefully, you'll note that regardless of when you pay, the payments are applied on the date your selected schedule specifies. For example, my payments to Countrywide/BoA are applied to my mortgage on the 1st of the month. If I send them a check mid-month, they'll just hold it till the 1st. Even regular, extra-principal payments are handled the same way -- applied on a single, specified date monthly.

This depends directly on the mortgage contract. I am not surprized by Countrywide putting in a specified date to apply payments, but not every lender follows this format. You are right - look to the note and mortgage to see how your payments will be applied.

[BkinTX]

We were with a local lender and they sold our mortgage to CW who sold our mortgage to BofA. Where are our rights to keep the original terms we took when we signed for our mortgage?

[oldhack]

...I am not surprized by Countrywide putting in a specified date to apply payments, but not every lender follows this format. You are right - look to the note and mortgage to see how your payments will be applied.

Actually, CountryWide was not my originating lender, and they couldn't/didn't change my contract when they bought it. The payment-date clause was in the original.

We were with a local lender and they sold our mortgage to CW who sold our mortgage to BofA. Where are our rights to keep the original terms we took when we signed for our mortgage?

CountryWide didn't sell your loan to BoA, they sold themselves to BoA. Technically, CountryWide no longer exists, except as part of Bank of America.
And, they COULDN'T unilaterally change of the terms of your original contract unless you signed something allowing it. The notification I got from CountryWide when they assumed my note specifically stated they could not and did not change any of its terms.
Now, my mortgage originated AFTER my Chapter 13 discharge, so I have no experience with what a court/trustee might do within a case. However, I find it hard to believe it legal that any terms obligating you can be changed without you knowing about it.

[BkinTX]

Fine print, I guess?

I believe BofA has acted quite unethically in regards to our mortgage. But that's ok because they can eat our cc debt.