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Mortgage start up after filing chapter 13 wells fargo

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    Mortgage start up after filing chapter 13 wells fargo

    Hi all , happy new year !

    I am wondering if people could help me , i am filing chapter 13 next week and i am confused about our mortgage with wells fargo

    i have informed wells fargo that i will be filing chapter 13 bankruptcy , they haven't started foreclosure proceeding yet , but i am assuming it will happen very soon , so i may as

    we are 13500.00 in arrears to wells fargo , i spoke with thier bankruptcy dept and they seemed clueless on how it works or they were just being evasive as they always are.

    1. Does wells fargo file a claim for the arrearages ? I am told by other people bank like to put additional funds on the arrearages just make it harder on you or they like to stall to get you further behind.

    2. When is my 1st payment due? , i am told its do when you to the 341 meeting .

    3. Most importantly , because i will be paying arearages to the trustee , does my payment go back to the original loan terms before i fell behind.

    4. Should i wait till i get the accelreation letter from wells fargo before i file - i am figuring the arearages will just put me farther behind so why wait for the obvious.

    Help with any of these questions would be greatly appreciated - filing in 2 weeks

    p.s. Wells fargo asked me to send it paperwork for a loan mod but i am not interested in a 3 month forbearance plan - i prefer to just get on with my life and get a fresh start instead of going through endless faxes , lost paper work , uninformed represenitives , and mass confusion

    your thoughts on this is very much appreciated.

    Bob

    #2
    Happy New Year! First, I never recommend telling any creditor that you are "going" to file Bankruptcy. They only know the technical aspect of the "automatic stay" and that they can't collect. They usually retain an attorney (inside or outside) to handle the specifics of the case. The Bankruptcy department just makes sure that any correspondence to the debtor is done through that department to avoid issues with that automatic stay.

    Originally posted by BOBBY1269 View Post
    1. Does wells fargo file a claim for the arrearages ? I am told by other people bank like to put additional funds on the arrearages just make it harder on you or they like to stall to get you further behind.
    Yes. They file a claim that contains their actual secured claim (the amount you owe) as well as what amounts are in arrears. In a bankruptcy, they are precluded from "extraneous" fees and a good attorney will make sure they only get the fees that are okay. Some of those fees could actually include fees to file a claim in the bankruptcy and maybe een some attorney fees. However, these are typically not that extravagant... several hundred dollars at most.

    Originally posted by BOBBY1269 View Post
    2. When is my 1st payment due? , i am told its do when you to the 341 meeting .
    Within 30 days of filing. It really depends on the District you are in since I've seen some strange things. In my District, it could be 44 days before making the first payment if you time the filing correctly.

    Originally posted by BOBBY1269 View Post
    3. Most importantly , because i will be paying arearages to the trustee , does my payment go back to the original loan terms before i fell behind.
    Yes. When paying arrears through the plan, your "regular" mortgage payment will be separate. While your mortgage may not be deemed "current", at least they are separate payments.

    Originally posted by BOBBY1269 View Post
    4. Should i wait till i get the accelreation letter from wells fargo before i file - i am figuring the arearages will just put me farther behind so why wait for the obvious.
    That is a strategy question that may be good for your attorney. You'd have to look at the impact on your overall Plan! You might not be able to "afford" more arrears since you also pay the Trustee fee (up to 10%) on all payments made through the plan.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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