does mortgage co ever refuse to take payment

[IamOld]

Fingers crossed, CHapter 13 will be filed late next week. Lawyer says it's "better" to be 2 months behind on mort (which I don't like) - so next payment for MAY will be mailed to mort co (assuming they turn off online by then) - do they ever refuse payment and not cash the check? If yes, what do I do then?? By the way, it'll be only $3600 behind...total, house is about $50,000 LESS than mort note. Doubt that they want house...

What does everyone think??

[despritfreya]

The lender is required to accept timely made post petition payments. However, depending upon when you file and when you send the $$ the account may not have been transferred to the bk department of the lender. It is possible that the 1st payment will be refused as it is not enough to bring the account current. If that happens it happened in error. Your attorney simply re-sends the $$ with a letter that payments are not to be refused. Not a big deal.

Des.

[IamOld]

The lender is required to accept timely made post petition payments. However, depending upon when you file and when you send the $$ the account may not have been transferred to the bk department of the lender. It is possible that the 1st payment will be refused as it is not enough to bring the account current. If that happens it happened in error. Your attorney simply re-sends the $$ with a letter that payments are not to be refused. Not a big deal.

Des.

Thanks very much!!!!! Des! Normally if in the past I paid ONE MONTH (say I was 1.5 months late) I think once or twice - they took the payment applied it, and then I was only.5 months late. So never was problem in the past...just trying to ask all possible questions before next week!!!! :-)

Honestly, I wouldn't know where I'd be without you guys.

[Pandora]

Fingers crossed, CHapter 13 will be filed late next week. Lawyer says it's "better" to be 2 months behind on mort (which I don't like) -

did you ask your lawyer why he thought it's better to "fall behind" on your mortgage exactly? This is a first for me as both our lawyer (personally) and trustee (via mail) have stated over and over NOT to fall behind on any bills, especially the 1st mortgage. I'm not sure I understand your lawyer's thinking in that process; if you fall behind you will simply have to pay arrears inside your plan AND regular mortgage payment (most cases, outside the plan). Thats just more $ out of your pocket every month not to mention more $ the trustee gets paid to send arrears in.

??

[IamOld]

did you ask your lawyer why he thought it's better to "fall behind" on your mortgage exactly? This is a first for me as both our lawyer (personally) and trustee (via mail) have stated over and over NOT to fall behind on any bills, especially the 1st mortgage. I'm not sure I understand your lawyer's thinking in that process; if you fall behind you will simply have to pay arrears inside your plan AND regular mortgage payment (most cases, outside the plan). Thats just more $ out of your pocket every month not to mention more $ the trustee gets paid to send arrears in.

??

Frankly that was thought as well - I think the atty is thinking that he'd rather have some "savings" on my part, and have the monthly trustee payment (the mort + car arrears it would be about $100/mo over 60 months) money going to mort and cars rather than to unsecured. The truth is, w/out taking a 401k loan out, I couldn't be caught up with the mort and cars by the time Ch 13 is filed AND paid the atty fee (which I just did). Each are essentially 1 month behind. So really I'm only one more month behind. BUT!!! I've kept the money aside, so to speak just in case I do need to catch it up. The atty HATES unsecured creditors with a passion!

Oh and signing - fingers crossed - is late next week, so I'll ask again, just to make sure. They did say that I need to (and of course will) pay May mort, cars, on time. Mort/cars will stay outside of plan - the regular payments to mort & cars.

[despritfreya]

@Pandora,

Sometimes we will suggest to our clients not to make 1 or 2 payments since we can provide for them in the Plan. This gives the client the ability to pay our fees. Ya know - us attorneys always come 1st.

Des.

[shark66]

@Des:

If you were my attorney, you most certainly would come first.

God bless you for all the good advice and help you provide around here.

That's all I had to say.

Good luck to us all.

[IamOld]

Thank you guys VERY VERY much, Des, Shark, everyone!

that makes sense...that's what I think he's doing :-)

ALSO Des - wonderful Sallie Mae just raised my payment back to it's "normal" level of $600 and change/month effective June 28th...if there is a CH 13 does SLM( Federal student loan NOT private) go into deferment?

And - and this is something I just do NOT understand at all - is FEDERAL student loan repayment considered a priority payment like existing payment plan to IRS - in other words is it an offset to Ch 13 payment?

[Pandora]

@Pandora,

Sometimes we will suggest to our clients not to make 1 or 2 payments since we can provide for them in the Plan. This gives the client the ability to pay our fees. Ya know - us attorneys always come 1st.

Des.

LOL Des - but of course... attorney fees are of utmost importance Makes sense when you view it that way

I'd of hired you darlin'

[despritfreya]

Sallie Mae just raised my payment back to it's "normal" level of $600 and change/month effective June 28th...if there is a CH 13 does SLM go into deferment? And - is FEDERAL student loan repayment considered a priority

During the course of the 13 the lender cannot enforce collections. The lender should (but may not) file a claim and participate in whatever distribution there is. Interest will continue to accrue but you are not required to (and technically not allowed to) make payments directly to the lender.

All student loans, private and/or Federal are simply general unsecured loans (not priority) that are not subject to the discharge.

Des.

[IamOld]

THANK YOU and understood.

Now, here is my question - IF interest continues to accrue and if that causes one to go over the Ch 13 limit at some time in the future...is that a problem? OR is it only an issue when one files? (Of course some other debts are being paid down..)

During the course of the 13 the lender cannot enforce collections. The lender should (but may not) file a claim and participate in whatever distribution there is. Interest will continue to accrue but you are not required to (and technically not allowed to) make payments directly to the lender.

All student loans, private and/or Federal are simply general unsecured loans (not priority) that are not subject to the discharge.

Des.