Mortgage Arrearage

[jwmc1]

If I am 30 days past due or more on my 1st mortgage and I file for
bankruptcy can my lender declare a default and accelerate the debt? Can
they choose to foreclose after the stay is lifted for secured creditors
since I am past due? My concern is that I have a pretty good loan on my
first and I am almost 10 years into it, I would hate to have this filing
jeopardize my this loan. My understanding is that the first mortgage lender
must allow me to continue making the payments and put the arrearages into
the plan, but I am unable to determine if this is an automatic or not.

[tjs1970]

i think it is automatic if you can afford it.........my understanding is that most of the time you would continue to pay your first mortgage outside of the plan and the arrearages go into the payment to the trustee..........not in all cases i assume, but from the basics I have researched, this seems to be happening more often than not.......kind of the beauty of being behind, since more of your monthly payments go to arrearages than unsecured debts thus waiting to file a 13 just before foreclosure proceedings makes more sense in the terms of payments? is i am interpreting this right or am i way off base?

it seems after a little research i have done, that i could possibly be rewarded by not having to pay off my giant amount of unsecured debt because i happen to also have a boatload of secured stuff that will come first

[UpsideDownMI]

If you have arrears on your mortgage you will have to include your mortgage in your plan. That being said, your lender will not be able to foreclose as long as you make plan payments.

[holding on]

If you have arrears on your mortgage you will have to include your mortgage in your plan.

Do you mean plan payment? Even if you aren't in arrears you would have to include your mortgage payment in your plan. I was in arrears and that arrearage was put in the plan through the plan payment, but I pay my mortgage outside of the plan.

So to the OP's concern the BK filing should not jeapordize your loan and as long as the arrearage is paid by plan's end (which it should definitely) you should be current and the lender have no issue to accelerate the mortgage.

[jwmc1]

My thought is that all debt is handled "in the plan."

[holding on]

My thought is that all debt is handled "in the plan."

I was just trying to clarify "in the plan" and "part of the plan payment". yes you are correct in that all debt must be included in your chapter 13 plan, but that doesn't automatically mean that all debt payments are part of your plan payment. I have 3 secured debts that I pay by myself outside of the payment I send to the trustee. And that's a good thing because that's less I have to pay the trustee in the form of the trustee %.

[UpsideDownMI]

In the eastern district of michigan, the trustee will require any secured payments that are not current to be included in your plan payment. I have a car loan that is payed outside of my plan payment. At my 341 my trustee told me that if was behind on payments it would have to be included in the plan. I told him that it was current and he said it was ok for me to pay direct.