SCARED - MISSED 3 payments on Mortgage, Ch. 13

[jlj102]

yes, i send in the money myself

[jlj102]

That would be better for me....to have mortgage and trustee payments paid in plan...and i would like them automatically taken

[ConfusedinOC]

If jlj102 pays the mortgage in plan does the DMI go down according to the trustee's 10% cut? Which in turn lowers the percentage to unsecured.

[justbroke]

If jlj102 pays the mortgage in plan does the DMI go down according to the trustee's 10% cut? Which in turn lowers the percentage to unsecured.

Yes, they work in tandem, because the Trustee payment is considered "debt service" and is subtracted from the income and allowable expenses, before reaching that DMI figure.

Hey, you're getting good at this.

[rrockinggramma]

however the issue here is that the OP doesn't have the money to make the mortgage payment current. Instead of jumping into modification to include post petition debt the question we should all be asking the OP to answer is why are the payments missed to begin with (I guess they said that in the first post)

3 payments behind and no way to make them up will probably equal NO sympathy from the judge. I am not trying to be the wet noodle in all of this but the OP might need to face reality here and that is "they can't afford this house" If this is always going to be a struggle then other alternatives need to be looked at.

The OP can pay the attorney to try and modify the plan but I bet it won't be allowed and the relief of stay will be lifted by the trustee.

The OP needs to do a reality check here and perhaps start looking into other housing that the OP can afford to make the payment on time each month.

[jlj102]

my salary was short in april and may of 2009...I CAN AFFORD MY HOUSE!..it was an unusuall month and the job im gonna get provides an additional steady income of $500 per month, so i wont be in this situation again. and i plan to refi to get a lower rate and in turn a lower mort. payment

[forgotten]

and i plan to refi to get a lower rate and in turn a lower mort. payment

How do you plan to refinance while in a 13?

[rrockinggramma]

well I wish you the best. My bet, the judge allows the stay to be lifted ON THIS DEBT ONLY and thereby allows the lender to proceed with foreclosure should you miss another payment EVER. It costs the lenders money to file those motions (which of course will be passed on to you) but this will avoid the lender having to return to court when you miss another payment.

THe issue is whether the trustee and or judge will ALLOW post petition debt to be spread out. If not, then you are fair game to the lender and will have to somehow modify the loan to make it current.

But I wish you all the best. Let us know how it comes out.

[MSbklawyer]

well I wish you the best. My bet, the judge allows the stay to be lifted ON THIS DEBT ONLY and thereby allows the lender to proceed with foreclosure should you miss another payment EVER. It costs the lenders money to file those motions (which of course will be passed on to you) but this will avoid the lender having to return to court when you miss another payment.

Yes, that's fairly common. They're called 'drop dead' orders. If another payment is missed, the stay is lifted automatically, without further order of the court.

THe issue is whether the trustee and or judge will ALLOW post petition debt to be spread out. If not, then you are fair game to the lender and will have to somehow modify the loan to make it current.

Chapter 13 trustees (at least ours) are usually pretty eager to help plans succeed any way they can. The get paid a commission (somewhere around 10%) of the disbursements they make under the plan. As for judges, if the plan is feasible, they don't really have a dog in the fight as long as nobody objects. If the case is forced to convert to 7, nobody is happy.

So I think our OP has pretty good prospects if he has income that is demonstrably sufficient to fund the plan as modified. Lenders these days are usually the most eager one of all to keep a person in the home as long as there is a reasonable prospect they will get paid.

I wouldn't sweat this one too much. Aside from some additional attorneys fees and a new and higher bankruptcy plan payment it should be ok. But I wouldn't let it happen again either.

[rrockinggramma]

that is probably true that lenders don't want the house in today's times. I know that in Michigan getting a plan modified is like pulling teeth. The trustee's in Michigan are pretty fair in the beginning but unforgiving if you get into more trouble. But trustee's are different everywhere so hopefully it works out well for the OP.

And thank you MS LAWYER for posting here. Your expertise is much appreciated.

[becky20]

my salary was short in april and may of 2009...I CAN AFFORD MY HOUSE!..it was an unusuall month and the job im gonna get provides an additional steady income of $500 per month, so i wont be in this situation again. and i plan to refi to get a lower rate and in turn a lower mort. payment

Be careful of an extra job - depending on your trustee, if they see your income has gone up that much, that means your disposable monthly income has also gone up, so they may increase your payments...

[jlj102]

all of your comments are very helpful.....well i definitely will tell you what happened.