Mortgage not current at 341?

[lolly78]

I was hoping to get a reimbursement from my employer which I would use to catch up on my March mortgage then I would be able to start fresh april 1st on time every month. (I'm never more than a month behind). I'm concerned now because I'm not sure that the money will come through before my 341.

Also I noticed that when BAC filed their claim they listed it in care of a local attorney. Is it possible that they would send this attorney to my 341 because I'm one month behind? I didn't want to have to tell the trustee oh I'm waiting for extra money from my employer then I'll pay the mortgage. I figured that would open up a can of worms regarding what that money is for, how often I get it etc. (It's not income, it's tuition reimbursement).

Now I wish I would have thrown that one month into the plan to repay. Is it too late to do this?

[despritfreya]

1. While you should not fall behind on your post petition mortgage payments, your 341 meeting has no impact on this issue.

2. The lender always hires an attorney therefore, the fact that an attorney filed a claim on behalf of the lender is not a problem. It is highly unlikely that someone will show up at the 341.

3. The moment the reimbursement comes in get the mortgage payments AND late fees current. You want to bring the account post petition current before the lender asks its lawyer to get involved. Once that happens you will most likely also have to deal with the lender's legal fees.

4. The bk Code requires you to resume your mortgage payment with the first payment that falls due after you file. While it is possible to add that 1st payment to your Plan it is not recommended.

Des.

[IamOld]

despritfreya - thanks so much for that comment - if I may - in other words, if I'm say 25 days late on mort when FILING, I need to make sure that I make A payment for the first of the month immediately after filing?

ALSO different question - idiot bank paid my property tax, which they say was "past due." Of course neither my glorious county nor the bank actually talk to each other - I was paying on an APPROVED payment plan by county to county.

Now I see it applied to my account BUT not to my balance.

Why do I have a strange feeling that when I make my next mort payment, these people will apply it to the taxes first, making me be...about $1,000 behind...Ch 13 can't come fast enough (looks like atty can't "make" Ch 7 happen)...any thoughts as to what bank would do? Their online system is horrible doesn't give you much clues.

[despritfreya]

To IamOld,

Property tax issue:

Your lender is protecting itself by advancing payment of delinquent property taxes - and the payment plan you had is not your lender's concern. Depending upon State law, delinquent property taxes can (but for a bk) result in a sale of the tax roll and subsequent foreclosure of the tax roll. If a tax roll foreclosure happens, the lender could be wiped out of its lien rights. Your lender was not being "mean". It was just protecting itself.

Once you file bk, the lender should include in its Proof of Claim the advance for the property taxes. This means that the actual pre petition arrears will be higher than you thought so take that into consideration when you calculate how much you owe pre-petition. The real issue is making sure the lender includes the advance in its claim and does not try to increase your monthly escrow payment (not sure you have one). Once you file, watch your monthly billing statement carefully for any questionable changes. If the change happens before you file you probably will not be able to get it reduced down, however, your Chapter 13 Plan will not have to account for the "advance" and, if you do not impound, the escrow amount should drop off once the taxes are brought current.

Since it appears that you pay your taxes on your own I just wanted to mention that in general, it will be very important for you to keep your post petition property taxes current. If you have a tough time "disciplining" yourself to make the payments then, maybe you want your lender to escrow it.

As to the first part of you post - yes. If you were 25 days late prior to filing, that payment (and late fee) will be part of the 13 Plan. You would resume payments with the 1st payment that comes due after filing.

Des.

[IamOld]

A million thanks DES (just fyi, the county didn't list it is delinquent but I guess for this "bank" it didn't matter) my concern is that when I make my next payment they'll decide to apply it to the balance of the taxes - it's not a HUGE amount "only" 1400...BUT I was paying it on installments because I don't have the money at once.

unfortunately they won't escrow...I asked.

Again, a million thanks. I feel a bit better (or less bad :-) now! Good thing is next tax bill isn't due until Sept!

[lolly78]

Des was right, no one showed up and they didn't ask about whether my mortgage payment was current. I still haven't received the reimbursement, but we did get paid today so I called in my March mortgage payment today. Obviously since it's March 31st it is late. Why wouldn't Bank of America charge a late fee? They are not going to try and tack on a bunch of fees later on are they?