I am so confused

[michaela]

My mortgage is with CHASE my payment is 3300 (2300mort 1000taxes) When I send my payment in they take the whole payment and use it for the mortgage not the taxes (they are paying my taxes). For example I sent in my payment for March 3300 but when I call they say that money is for my August payment because they take 2300 for the mortgage payment and then the 1000 they put towards the following months mortgage payment. Why do they do this??

[justbroke]

They do this because their systems can't differentiate the payment and/or there is something wrong with your Escrow account. Since you are in Chapter 13, you will probably need to keep track of this and perform a reconciliation at the end of your Chapter 13. Many banks end up informing the debtor, at the end of the Chapter 13 plan, that they didn't pay enough. It is simply because the bank took portions of the payments and put them into a suspense account ("holding" them for the next payment.

If you are so inclined, you may want to ask for an Escrow analysis on your account. Hopefully, when you call you ask for the Bankruptcy Department as you should only be speaking with that department, if at all.

[michaela]

What happens at the end of the chapter 13 and your mortgage company says your short $8000 if you dont have it what are your options??

[justbroke]

What happens at the end of the chapter 13 and your mortgage company says your short $8000 if you dont have it what are your options??

It depends on what is in your Confirmation order. If they are trying to add additional late fees or other charges, they can only get these by receiving permission from the court. They can't spring this on you the late minute. However, if there was something you were supposed to pay outside the plan, and you failed to, then you are not protected by the Confirmed Plan.

Your options are to seek a contempt order and sanctions for violating the stay and the Confirmed Plan. If there are issues prior to the end of the Plan, it's better to try to get those fixed before the end of plan. The issues, while not insurmountable, may just be burdensome and cause issues, such as a foreclosure action! It does happen, but in most cases it was caused by unauthorized fees or applying the payments incorrectly.