Boa forclosure fee

[terryorr56]

Hey all i am just about finished with year 4 of my chapter 13.home forclosure was stopped when i filed in june of 08,my boa statement shows an unpaid forclosure fee. is this something i should worry about thanks .

[HHM]

Are you keeping the home?

If so, then yes, it is something you need to worry about. Chapter 13's do not discharge mortgage debt. As such, post petition fees (e.g. the foreclosure fee) is a live debt and will need to be paid. It sucks. The reason you are probably seeing it is that the BK rules changed requiring disclosure of any fees assessed to a mortgage debt after the filing of the chapter 13 petition. At least you found out about it now, many people are receiving their chapter 13 discharge only to find they are still in default of their mortgage because of these post petition fees and costs.

[terryorr56]

yes i filled to stop the forclosure boa has been rasing and lowering my payment monthly lol .im not sure what there game is .

[stitchnrails]

How much is the fee? I have B of A also and wasn't aware of that.

[terryorr56]

its on the back of the monthy statement they send me. lists as outstanding fee summary the amount is 2622.26 !!!!

[Billssuck]

So if your not keeping the home (i.e. surrendered the home) does this fee apply? We modified our ch13 about 2 years ago (still haven't fc) to surrender the house and it was approved by our trustee showing a zero balance. BOA didn't file a claim.

[chicagoed195]

Part of the problem with BOA is that they account for all of the payments they receive as if you never filed bankruptcy. In the monthly statements, they credit your current payments and payments from the trustee to the oldest arrearages first. The last charges they will apply the payments to are the fees charged for the attempted foreclosure. In theory, if one makes it through the entire 36 or 60 months of payments, all of the fees should eventually be paid. Again, in theory, at the end of the 60 month period, any legitimate foreclosure fees would have been paid via the Chapter 13.

I believe they credit the payments this way simply because so many Chapter 13's fail and this way they don't need to go back and recalculate the ultimate liability and can assess new fees on all of the late payments as part of the new foreclosure action.