GMAC Mortgage - misapplied arreage payments

[hmchem]

I have been getting jerked around by GMAC since we entered Ch.13 in 2010. The problem I am having is they don't seem to apply payments toward any outstanding balances correctly so we are still 3 months behind on payments two years later. We had an arrearage of 22K that was paid immediatley upon approval of the bankruptcy. We have recently paid off the post petition arrearage of 10K but they applied almost half of toward escrow. We now have about 5K overage in escrow for what our taxes will be in November. Given GMAC's past history I expect they will either send me a big check or they will lower our payment causing me to be short next year.

I have been told by my lawyer that the trustee sends a document to the court showing what has been paid and how it must be credited but that doesn't seem to change how GMAC reflects payments. I have right at 12 months left and I don't want to emerge from bankruptcy at the mercy of our mortgage company.

Is this a normal accounting practice for mortgage companies and this will all be corrected magically toward the end? I am frustrated seeing so much money being misapplied and still showing past due by 3 months when I know we have paid everything that is owed to them.

I take perverse joy in knowing GMAC is in bankruptcy and only hope that their creditors treat them equally bad!

[justbroke]

This is normal and I would not worry about it. They are required to, upon completion of your plan, to show everything as paid. What typically happens is that their system automatically takes the Trustee payments and just applies them to either a suspense account or to arrears. This should not be a problem at all with your Chapter 13. It's just their poor accounting practices when you're in an active Chapter 13.

Should they actually be "reporting" your payments as LATE to the credit bureaus, then that would be a problem.