Please help me! Almost completed the 5 years and problems with mortgage company.

[kayday]

We are a few months shy of being complete of our chapter 13. I feel like our mortgage company has took money from us that they shouldn't but our attorney will not help. I hope someone can tell me what to do. Its kind of long but here it is.....

Back in 08/09 we had a motion to release filed b/c we got behind on payments. Well we paid a lump payment and 6 months of an extra amount with our regular house payment. Well about 5/10 I happen to look online and saw it was saying we was 1 month behind. I called and they said oh it was just the way the payments are posted and they was showing us current. We was paying every payment from 8/09 every month but in 08/11 I made Aug payment 8/31 (they posted it to July) Then on 9/22 when I called to pay Sept payment I find out they referred it for motion to release. They was saying I owe for 3 months. So I went online and saw they reversed my 8/31 house payment. So at that point they say we owe July. Then on 9/26 they take 800.00 for attorney fees. Well then on 10/5 they reversed the motion so 10/6 I paid a payment. Well then I find out they did another motion to release referral on 10/7. So I called attorney they said to wait til they get paperwork. I have called them a few times a week sense and still no real answer of where my 800.00 went b/c they still haven't filed the motion (only referred) and I finally got my attorney office to call there attorney. Well she never called me back. 1 week later I call her and she said no one called her back and she would call again. Well now its been over a week and no word. Mortgage company says that well when you file bankruptcy we have to cover our expenses of our attorneys to represent us. Well I don't think that is right. If this was for the motion to release then shouldn't they wait til they file it? And if this is for filing bankruptcy then are they legally able to take my house payment and charge me a fee almost 5 years later? Oh and I found out that sense 09 I have over 500.00 credit on my account no one mentioned. I'm thinking from my other motion to release and my other payment they never covered. Shouldn't they have said a while ago....hey we didn't get enough money for this last payment to get you caught up.

[markinva]

WRT to your situation, the attorneys just have to battle it out - and they sure do move slowly, don't they? I'm just at the beginning of Chap 13 but I noticed that my mortgage company immediately started adding "statutory legal fees" of over 100.00 (What Statute???) to my monthly payment as of my filing date. What is up with the banks and mortgage companies??? - The last thing that people who file BK need is increased monthly expenses!!! There should be a law... - A uniform, simple, National BK law/code.

[IamOld]

Guys, the banksters lie cheat and they OWN the system. Period.

Sounds like kayday your bankster deliberately (or due to sheer stupidity) doesn't know what they're doing (which is my fear with my mort co). Of course your lawyer sounds like someone who could care less...I think you may need to be a pain in her rear end for them to do something...

[keepsmiling]

WRT to your situation, the attorneys just have to battle it out - and they sure do move slowly, don't they? I'm just at the beginning of Chap 13 but I noticed that my mortgage company immediately started adding "statutory legal fees" of over 100.00 (What Statute???) to my monthly payment as of my filing date. What is up with the banks and mortgage companies??? - The last thing that people who file BK need is increased monthly expenses!!! There should be a law... - A uniform, simple, National BK law/code.

Agree completely. It's just wrong that people who are equally broke get considerably better treatment in some states than others (ie, exemptions, tt preferences, etc).

[keepsmiling]

Guys, the banksters lie cheat and they OWN the system. Period.

Sounds like kayday your bankster deliberately (or due to sheer stupidity) doesn't know what they're doing (which is my fear with my mort co). Of course your lawyer sounds like someone who could care less...I think you may need to be a pain in her rear end for them to do something...

Goes back to the other thread, you MUST be your own advocate in most things. Nobody else really has your back. Tough nuggies if they think you're a pain in the butt.

[kayday]

At the end of this month I was thinking of paying the final 662 that I owe to be done with the bankruptcey. Should I do that with all that is going on? Would that help or hurt? What happens if I am done but mortgage is showing behind?

[HHM]

Well, if its any consolation, the new bankruptcy rules of procedure address this issue, the creditors must file a notice with the court for any post petition fees charged to the debtor.

That doesn't help you now. Your issue is not unknown, but most attorneys did not anticipate the issue and even so, it is not clear the remedy. We are starting to see many people emerge from chapter 13 bankruptcy that they filed to save their house only to find out that fees have been accruing and if they don't pay when the case is discharged, the debtor is right back in default on the house.

[IamOld]

sooo...the banksters are adding fees WITHOUT disclosing it to the Court (in violation of bk rules) OR to the debtor and/or to the debtor attorney in order to foreclose - isn't that the very definition of fraud with malicious forethought?

(Oh silly me - that's just normal for the banksters...)

Well, if its any consolation, the new bankruptcy rules of procedure address this issue, the creditors must file a notice with the court for any post petition fees charged to the debtor.

That doesn't help you now. Your issue is not unknown, but most attorneys did not anticipate the issue and even so, it is not clear the remedy. We are starting to see many people emerge from chapter 13 bankruptcy that they filed to save their house only to find out that fees have been accruing and if they don't pay when the case is discharged, the debtor is right back in default on the house.

[lillymarlene]

Mortgage company says that well when you file bankruptcy we have to cover our expenses of our attorneys to represent us.

Exact same words my new mortgage servicer used to try and bill me an additional $900 fee, because I had filed chapter 13. I had never been late with them. It's just unbelievable the things banks will try and get away with. Luckily for me though, the bank later changed their mind about charging the fee.

[kayday]

Okay so I never got a call back from my attorney after asking them twice to find out why they charged me 800.00. After waiting from Oct when they referred the acct for motion for relief, Saturday we received papers that they mortgage company has filed for motion for relief from stay. They are asking for the month that they reversed and 826.00 in attorney fees again!! I don't think that is right. Also we are in the process of applying for HAMP loan mod. Guess that doesn't matter either.

[keepsmiling]

Aw jeez. Good luck with this Kayday, keep fighting the good fight. We all hope you win one for the little guy here!

[lrprn]

Okay so I never got a call back from my attorney after asking them twice to find out why they charged me 800.00. After waiting from Oct when they referred the acct for motion for relief, Saturday we received papers that they mortgage company has filed for motion for relief from stay. They are asking for the month that they reversed and 826.00 in attorney fees again!! I don't think that is right. Also we are in the process of applying for HAMP loan mod. Guess that doesn't matter either.

Ok, now this is serious. Call your attorney's office first thing in the morning, share that you've received a letter that your mortgage company has filed with the court asking to overturn your stay and come after your house. Tell the office staffer who answers the phone in no uncertain terms that you **MUST** speak with your lawyer as soon as possible about this. Make a face-to-face appointment later this week if you have to but don't take no for an answer. You absolutely must work with your lawyer to decide how to best address this quickly.

If your attorney's office won't work with you to get the two of you together this week or the lawyer can't find time to meet with you even over the phone, then you need to tell the office/your lawyer that after several contacts with no return calls or emails, now given the circumstances with your mortgage company coming after your home you now have no choice but to report your attorney to your state's lawyer displinary agency for abandonment. You can find out the name of the agency in your state along with their contact information here - http://www.americanbar.org/content/d...thcheckdam.pdf . I hope it doesn't come to this.

Our mortgage company tried to do this very same thing to us right after we filed. They filed an objection against us stating that we were late on our mortgage when we filed - we weren't and I coud prove it with their own paperwork. Our lawyer tried to work with them but was being stonewalled. After negotiating for two months without any progress, our lawyer then set up a court date and invited our mortgage company to show up, justify asking for the fee to file the objection and also prove we were late when we filed in front of our local bk judge. The court date came and the mortgage company lawyer was a no-show. We won by default! Our mortgage company lost their objection and also was not allowed to charge us for filing the objection either. In fact, our trustee pulled back the first disbursement he had already sent their way. It was a sweet victory!

I'm so sorry that your lawyer has gone AWOL here at the end of your plan just when you need him/her the most. Hopefully this time with your mortgage company filing to lift your stay will get him/her off the dime. Hang in there! Keep us posted about what happens.

[HHM]

I think some clarification is needed on the rights and responsibilities of a lawyer post confirmation...

Lrprn makes a good point, but reporting to the state bar is not going to get the "result" you seek. Keep in mind, the issue you are having with the mortgage company, is NOT in your attorney's control. As such, even if you got in touch with your attorney, he CAN charge you fees to deal with it and refusing to deal with it is no, per se, abandonment. So, do be prepared for that reality. Keep in mind, this issue is NOT your attorney's fault, it is the mortgage company trying to play games and do things of "questionable" legality. But, there is a VAST difference between "having a right," and "enforcing the right." It is in "enforcing the right," where the rubber meets the road and the true cost and expense of lawyer services come into play.

Bankruptcy is littered with these examples, for example, take IRS tax discharge. The attorney does all the analysis, reviews the transcripts, lists the IRS debt accordingly, and files your BK with you and your attorney fully understanding the debt is dischargeable. However, the IRS disagrees, but does nothing, and 6 months after the BK is discharged, the IRS starts trying to collect? You, as the client, calls your attorney all pissed off, but guess what, the it is not the attorneys fault, he did everything right, and the IRS simply ignored it; now you need to decide if it is worth the expense to fight it.

Or, collection agency is trying to collect, you send Cease and Desist letter, but the collection agency ignores it. You go see an attorney, and the attorney wants $5K to initiate suit.

That is the reality of law, there is a VAST difference between having legal rights and enforcing legal rights. Having rights costs nothing, but as we have seen, is also worth very little. Enforcing those rights is where things get expensive.

I wish you the best of luck. But understand, most BK attorneys know squat about this issue. I can practically guarantee that if you get in touch with the attorney, all they will say is, "they can charge you post petition fees, so pay it." And honestly, that advice is actually pretty accurate. But, at the same time, accept some responsibility here, you defaulted on your mortgage DURING a chapter 13 plan...that is just a BIG mistake and now you are living with the consequences.

However, you can hire a different attorney.