Chapter 13 Mortgage

[Robinrader]

My home loan is listed in my Chapter 13 plan however my mortgage payment is not part of my plan payment to the trustee. I was wondering since I pay my mortgage directly to Bank of American would they still have to request a relief from stay to start any forclosure proceedings.

I have stopped making my house payment for six months now and have been recieving four to five phone calls from Bank of America for the past two weeks asking the same questions about my salary and other things.

I answer their questions but the calls never stop even at night after 9:00 pm.

Any help please

[LadyInTheRed]

Yes, the bank has to get relief from stay before foreclosing.

By not paying your mortgage, you are in violation of your plan and are at risk of having your BK dismissed. If you have decided to surrender your home, you need to modify your plan or convert to a 7 if you qualify. You need to let your attorney know what's going on.

[newbie2]

My home loan is listed in my Chapter 13 plan however my mortgage payment is not part of my plan payment to the trustee. I was wondering since I pay my mortgage directly to Bank of American would they still have to request a relief from stay to start any forclosure proceedings.

I have stopped making my house payment for six months now and have been recieving four to five phone calls from Bank of America for the past two weeks asking the same questions about my salary and other things.

I answer their questions but the calls never stop even at night after 9:00 pm.

Any help please

Since they are calling you asking questions that leads me to believe that they very well could have received a lift from stay already. When is the last time you spoke with your attorney? As LadyinRed said, you really need to do that. A Chapter 13 is different than a Chapter 7 in many ways: Your whole financial house is under the the Chapter 13 plan, whether you make your house payment outside of the plan or not. You had money budgeted in your plan for your mortgage payment, and you haven't been paying it. The trustee (and your unsecured creditors) could object to this. Please call your attorney today and let him/her know what is going on so the house debt can be dealt with in your plan properly(surrendering, etc.)

[Robinrader]

First of all thank you guys very much for the advise.

I have been communicating with the office staff in my attorney's office. I have sent them a letter telling them I could no longer make my house payment do to salary reductions plus other written communications between myself and Bank of America. This really concerns me about the Trustee possibly getting upset about the non-payment of my mortgage.

My plan payment is high and it has been difficult just making that. I figured the plan must go on at the cost of my house but I never figured on possibly getting in trouble with the Trustee.

Thanks Again

[newbie2]

First of all thank you guys very much for the advise.

I have been communicating with the office staff in my attorney's office. I have sent them a letter telling them I could no longer make my house payment do to salary reductions plus other written communications between myself and Bank of America. This really concerns me about the Trustee possibly getting upset about the non-payment of my mortgage.

My plan payment is high and it has been difficult just making that. I figured the plan must go on at the cost of my house but I never figured on possibly getting in trouble with the Trustee.

Thanks Again

Robin, please call your attorney and set up a meeting face to face. You really need a sit down with him/her, and then you will have some clarity and also it will be less stressful for you. Good luck!

[Robinrader]

Well I just met with my attorney who told me that my mortgage is included in my plan but the payment so I should not worry about the trustee or the other creditors in my plan. He did say that I should expect Bank of America to request a relief from stay and then follow up with a forclosure action, at some point. None of which has started yet.

In regards to modifying my plan due to reductions in salary and other expenses, he told me that when requesting a lower plan payment he needs a good reason to make that request. Since I am having no problem making my plan payment due to living in my home rent free it would be better to wait until I have left my house and can show rental expenses.

One thing I found very refreshing was when my attorney was looking through my file I noticed every letter I sent his office was attached inside.

Thanks again for the help you guys.

Robin

[justbroke]

I would definitely sit down with my attorney in this situation. Once the Trustee finds out, they will be none too happy that you've been keeping the mortgage payment and it was not going to the unsecured creditors (or rent). As already stated, it could get your case dismissed.

It's best to work with your attorney and think about surrendering the home, since you can't afford it. You don't need to move first to get the rental expense! You need to make sure your case doesn't get dismissed. You can start looking for a rental today (tomorrow) and start planning to move. I really hope that you saved some of that money so that you won't be hard pressed for money to move.

[walkthaplank]

One thing I found very refreshing was when my attorney was looking through my file I noticed every letter I sent his office was attached inside.

I actually find it very disturbing that your attorney has received the letters, put them in your file and done nothing in response to them, even to say that they got them and they need to arrange a time to meet. We aren't talking about Christmas cards here, we're talking about you having a significant change in income that is making it impossible to meet the terms of your plan and has in fact put your case in jeopardy.