SCARED - MISSED 3 payments on Mortgage, Ch. 13

[jlj102]

i have made 6 payments..missed April 2009, May 2009 and Aug 2009. Mtorgage company filed for relief of stay. I AM SCARED OUT OF MY WITS.

my pay was low back in April&May...and Aug. I "STUPIDLY" forgot.

i don't have the money to pay out. does anyone know what will happen?

I FILED CH. 13 LAST DECEMBER 2008.. THEY SET A HEARING FOR END OF SEPTEMBER

[killinstinct]

Ugh! I would contact your atty/an atty immediately! (if you want to keep the house) Sounds like they want to initiate foreclosure.

[jlj102]

I have an meeting set for next monday with my attorney. Im afraid of what they'll say cause the truth is i just didn't have the money

[killinstinct]

Well let us know. I'll send good thoughts your way. Have you looked for threads about this in the 13 section?

[MSbklawyer]

How many months is your Chapter 13 plan for?

[jlj102]

i am in for 60 month plan (5 years).

[jlj102]

in the state of Pennsylvania

[MSbklawyer]

i am in for 60 month plan (5 years).

Well, you can't extend your plan out any longer. Explore the idea of putting the three missed payments in your plan and increasing you plan payment to cover them.

[jlj102]

so when i meet with my attorney i can suggest this? or will he?
so i think i have 54 more payments and the balance is $3600. then it says there may be attorneys fees and costs.

I SICK TO MY STOMACH.... I'M LOOKING FOR ANOTHER JOB. I NEVER WANT TO BE IN THIS SITUATION AGAIN!!!!

[justbroke]

MSbklawyer has spent his money well on his J.D. (sorry if you're not a guy)

Your lawyer may be able to work with the lender's attorney and do something known as "post-petition" arrears and add them into the plan! I actually have post-petition arrears of 3 months in my plan because I had actually moved out of my homestead with the intention of surrendering it, until I figured out that I could, and successfully did, strip my 2nd mortgage.

Generally, the Trustee would want the arrears paid within 12 months. So your payment would increase by the sum of 3 months of arrears divided by 12. That would be your payment INCREASE for 12 months.

If your lawyer doesn't mention post-petition arrears in Plan, then you need to mention it to him/her!

Don't mess up again.

[Flamingo]

Did you just miss 3 months of mortgage payments or also 3 months of Chapter 13 payments? You can take it either way from the title of your posting...

What you should have done when you knew you were in trouble and could not make any payment due in your Chapter 13 (whether plan payment, mortgage, car, etc.), is to have contacted your attorney immediately and advised him/her of the situation. Right now you are at risk of having your Chapter 13 dismissed due to late payments and your mortgage company will start foreclosure proceedings. You will need to investigate why you were not able to make your confirmed payments under your Plan...has your income dropped recently? Do you have other expenses since confirmation making it harder for you to make payments of any kind? Your attorney will go over everything with you but you really need to determine whether or not you actually can afford to keep your house.

If you do get this straightened out and remain in your Plan, if you ever feel you cannot make a payment of any kind during your Plan years, contact your attorney immediately.

[jlj102]

o... can i ask them to do a automatic debit... like biweekly or can i request the government's modification loan maybe to refi at a lower rate or something... im tryn to think of anything that will help

[justbroke]

o... can i ask them to do a automatic debit... like biweekly or can i request the government's modification loan maybe to refi at a lower rate or something... im tryn to think of anything that will help

If you are not already on a Wage Deduction Order, you probably need to be! If you're telling me that you pay the Trustee by sending in money yourself... then you probably need to, as part of the Motion to Modify Confirmed Plan, file an Motion For Entry of an Order for Wage Deduction to show the Trustee, and creditors, that you are serious.

This is why many Districts require Wage Deduction Orders.

[jlj102]

never been late on plan payments.

[justbroke]

never been late on plan payments.

But you are delinquent on Mortgage payments.

Just because you are paying the mortgage outside the plan, doesn't mean it's not part of the Plan of Reorganization. This is a common misconception. "In-Plan" usually refer to items paid by the Trustee, and "out-of-Plan" are items paid directly by the Debtor. It's a misnomer.

Failure to pay your mortgage, outside of the plan, could actually lead to your case being dismissed.

It wouldn't surprise me if your Trustee will now require your mortgage payments to be paid "in-plan". Unfortunately, that adds additional overhead in the form of fees, payable by you, to the Trustee.