Filed on 2/1, and our automatic mortgage payments stopped on current loan

[Danglin]

Here's our situation:

We filed Chapter 13 in the Eastern District of California on 2/1/2011. The main purpose is to handle $111,000 in pre-2004 IRS income tax debt, and about $70,000 in credit cards.

We have a first and second mortgage on our home, and both have been, and are 100% current, and we're keeping the home. The auto pay feature was supposed to deduct the February payment yesterday, but that did not happen. When I logged into the lender's website to check the account, the account and balance appeared, but no other info was available. I've placed a call in to the attorney, but since Wednesdays are the Chapter 13 341 meeting days in our district, he's probably in court, so I won't hear back until later.

Is the stopping of auto-payments on a mortgage normal in this situation? What happens next? Obviously, we'll hang onto the money, but we're not sure what to do.

Any info would be greatly appreciated!

[LadyInTheRed]

The bank stopped the automatic mortgage payments and online account access to avoid violation of the automatic stay. Unless your mortgage payments are being included in your plan payment, you should make the February payment. Call the mortgage company's BK department and ask for the correct payment address. If you have online Bill Pay with your bank, that is a good way to make payments. Or just mail them a check. They may also allow you to pay over the phone with a debit card.

If your mortgage payment is included in the plan, ask your attorney whether or not you should make the February payment.

[Danglin]

Thank you for the quick response!

We're calling to get that setup. Thing that sucks is, we have to pay a late fee because we're now one day past the grace period.

[LadyInTheRed]

Thank you for the quick response!

We're calling to get that setup. Thing that sucks is, we have to pay a late fee because we're now one day past the grace period.

If they won't waive the late fee, ask your attorney whether they are allowed to charge it. If taking the automatic payment is collection activity in violation of the automatic stay, I would think that charging a late fee would be too.