Due Dates

[pt721]

When in a Chapter 13 does the "grace period" after your mortgage due date still apply? For instance if your due date is the 1st of the month but you have till the 7th before any overdue charges apply is it ok to pay it on say the 3rd? or will being 3 days late allow the mortgage company to file a motion to be removed from the plan? Thanks much

[momofthree]

You should probably call your mortgage company and ask. I know that ours is due on the 1st, but we have it set to automatically withdraw from our account on the 5th of each month and it's never been a problem. But maybe that's because it's set up as a recurring ACH payment each month so they always know they're going to receive it.

[Pandora]

there is no "grace period" in a Ch. 13. If you're talking about the lenders' grace period listed on your statements, then if they do not receive payment / credited to your account by the date given, all fees will apply and you will be responsible for paying them.

You state your mortgage is inside the plan - why are you late in paying? Your trustee should be paying them if in your plan. If you have arrears in your plan but are paying your mortgage outside of the arrears, then you shouldnt be late as that could be cause for the lender to seek a lift. In general, 3 days isnt cause enough but it all depends on the lender.

What did your lawyer say?

[pt721]

i have not asked the attorney yet. we are paying the mortgage outside the plan, but the arrearage is in the plan. before we filed they were working on a foreclosure so i don't want to rock the boat. but my payday in Sept is the 3rd and i wanted to schedule it for that day, guess i will go ahead and do so for the 1st and hope it does not clear till the 3rd.

[Pandora]

If you dont get paid until the 3rd - then dont schedule the payment for the 1st if the money isnt there. Assume you're talking about an automatic payment - they generally clear immediately so unless you have it there, dont do it. Why not call your lender and explain that your payday isnt until the 3rd, and you will make payment on that day?

As momofthree stated, most times its not an issue but it really depends on the lender and how much of a jerk they want to be. Ours is due the 1st, but we pay it between the 15th - 20th of the previous month as that's how pay days fall, so we're always early in paying by at least 10 days.

[IamOld]

If this is of use to anyone - at least with HSBC...if you phone in a payment on DAy 1, it clears on Day 3. If they get a check on Day 1, it clears on day TWO! Go figure.

Do you think how "worried" mort lender would be depends on how underwater the house is??