Filed, 341 is in a week

[waitinggame]

Hello all,

I have filed and in a week, the 341. A few questions:

1st mortgage is late 2 months and that is included in the plan. They sent me a bill (even though I have a coupon book), which I guess I am to use now for future payments. Anyway, they are now saying that the escrow balance is projected to be negative, therefore, my payment is going up. Since I filed with the lower payment amount, will that be adjusted at the 341? How often will expenses/income be calculated? Will they continue to pay the taxes and insurance out of the escrow?

Also, at this time both 1st and 2nd mortgages are due. Which one would you pay? The 1st really won't be delinquent until the 16th of August.

I am trying to get everyone caught up and start this 5 year budget plan the right way...just seems so difficult.

THanks for any help...

[SMinGA]

If the mortgage co adjusted your escrow payment, you'll need to contact your atty ASAP and have your plan adjusted as that will reduce your DMI. Changing escrow is not uncommon - months of nonpayment will put it into a negative projection. At some point though it should balance out and get lowered.

What is the situation on your 2nd? Is your home worth less than your 1st mortgage balance? If so your atty should be proposing the 2nd to get stripped/treated as unsecured and you should not be paying it. (Meaning it also does not get counted as an expense.) You must make all post petition mortgage payments on time - the trustee might even ask for confirmation of those payments. So if the 2nd is staying (home worth more than you owe on the 1st) then you'll need to make both on time.

[waitinggame]

Thank you for the response.
I am going to pay the 2nd mortgage, and try to get them both paid up. The house is worth more than the 1st mortgage, but not in combination of them both. Will the taxes still get paid out of the escrow account, or will that stop too?
Thanks again for your help.