Accidently Missed Mortgage Payment Yesterday...Does this screw us?

[Danglin]

Basically, we forgot to make our December mortgage payment. We usually make it the last day of the month (and thus, the grace period), but in all that we had going on yesterday, it simply was overlooked. Anyway, we realized this about 4 AM this morning and immediately called Bank of America and made the payment, which will be applied tomorrow (1/2). Our mortgage was not in arrears going into our 13 and we're not serially late making payments. We just messed up this time and wound up making the payment about 4 hours late.

We did contact our attorney, who said not to worry as long as we've paid any late fees. I'm not even sure that Bank of America charges late fees to debtors in a 13, but if they do, will the trustee find out? And if the trustee does get notification, what implication is there to our case?

Is there going to be any issue with Bank of America objecting to our discharge when the time comes? I've heard of lenders doing this, so we're a bit concerned, as we have 2 years, 2 months remaining and can begin to see the light at the end of the tunnel. We'd hate to jeopardize our whole case at this late date.

Any advice would be greatly appreciated.

[justbroke]

I would not worry about this, especially if Bank of America "accepted" the payment. It makes no sense to speculate what they may do. They'd need to go into the bankruptcy court and ask for something. What would they ask for? A $20 late fee? It would be a waste of time.

[sophieanne]

Hi Danglin,

I don't think you have anything to worry about. When I spoke to my bank when I first started Chapter 13 (i pay my mortgage directly), the bankruptcy contact at the bank told me that when you pay your mortgage on your own, your account is treated no differently then if you were not in bankruptcy. I bravely asked the question of what would happen, if for some horrible reason I missed a payment and made it late one month (after the grace period). I was told that as long as it got caught up not an issue. They said the payment would have to be 3 months late before they would even pursue a foreclosure and of course it would be at that point they would have to go through the trustee to have the automatic stay lifted. And then I understand the trustee would work with you and the bank to give you the opportunity to catch up.

In your case, 2 things MAY happen..1..you will have 1 late payment shown on your record (if you missed paying by the last day of the grace period, they not be able to do anything about that..and 2, you may be charged a late payment fee. That may show up on your next billing statement (if you get one).

Regardless, at this point, just relax, you should be fine. the trustee would not be involved at all at this point.

Happy 2014!

[dmc-2008]

I have a grace period of 10 days i am surprised you dont.

[AngelinaCat]

Make your payment.

As was mentioned in another post, you should have a 'grace period'. If you should get any kind of grief, remind the complainant, as NICELY as you can, that the past two weeks have had HOLIDAYS in the middle of them, specifically on Wednesday of both weeks.

Remind them nicely, that should your mortgage holder have any problem with your payment, that they need to review their OWN policies regarding bank holidays, weekends, and other legal, Federal Holidays.

You will do fine!

[spidge]

From my experience it does not seem like the bank is interested while in a 13. As mentioned before, as long as you make the payment it is not worth the trouble for them. BUUUUT, I have read here and other places that if you pay late there could be adverse effects at discharge time. I have read of people having to come up with shortages related to the late payments while in a 13. What is considered late? Well, the due date is the 1st plus the grace period, so I would not be concerned over a couple days in you case.

I am in it with you and still don't have all the answers.

[toojerm]

I was in a 100% plan where things got tight, mortgage outside the plan. I knew I was 5 months from a bonus, so I let the mortgage slide for three months. A law firm representing the lender was added to the list of notified, but otherwise nothing. I caught up 6 months later, a year before discharge. These late payments weren't even listed on my credit history when I refinanced 2 months after discharge.

[spidge]

I was in a 100% plan where things got tight, mortgage outside the plan. I knew I was 5 months from a bonus, so I let the mortgage slide for three months. A law firm representing the lender was added to the list of notified, but otherwise nothing. I caught up 6 months later, a year before discharge. These late payments weren't even listed on my credit history when I refinanced 2 months after discharge.

Did the mortgage have any additional charges at discharge for you? I ask because I have read where someone made their last BK13 payment, but the mortgage company required they pay additional charges related to the timing of the mortgage payments. I will see if I can dig it up, but it could be they were asking for bogus charges not allowed in the 13.

If one makes the payment after the due date(plus grace period) does the mortgage company add daily interest charges? Could that be a possible surprise at the end of the 13? I ask these things as I close in on the end of my 13 and wish to be ready for anything. Not stressing, just planning.

[LadyInTheRed]

My Bank of America mortgage statement has a section called "outstanding post-petition fee summary". Below the summary is the following:

To the extent that Bank of America, N.A. intends to collect fees incurred during the bankruptcy case from the Borrower, the fees will be included on a Post-Petition Fee Notice pursuant to Rule 3002.1 of the Bankruptcy Rules.

You can read rule 3002.1 at http://www.law.cornell.edu/rules/frbp/rule_3002.1

So, if the late payment resulted in any late fees, you should receive a notice. There should be no surprises at the end of the plan.

While not making timely mortgage payments is technically a violation of the terms of your plan, I really doubt any judge is going to dismiss a case because the debtor made a payment a couple of days late, especially when payments were then kept current up to the date of the hearing on a motion to dismiss. I also really doubt that either the mortgage company or the trustee would bother filing a motion to dismiss.

[spidge]

Pardon reviving an older thread.

While reading the rule in the link provided by LITR it seems if the mortgage company fails to notify the debtor, attorney, and the trustee or any fees they will not be allowed. Does this include post petition late fees? My take on the info provided seems to indicate that if the mortgage company does not notify me then the fees will not be allowed. On the other hand is the timelines referenced in the link provided more around the discharge and payment change dates?

I have made many mortgage payments outside the grace period with no reaction from the bank, yet. I have not received a statement since Jan. 2014 but can follow online. I see no additional fees online. I am a little nervous about it, but cannot do anything yet. Currently 45 days past due and have been for some time. I may be able to catch up in the next few months, but we will see.
My payments all go into a suspense account and are later dispersed to the interest, principle, and impounds. Usually a few days later. If I wait until the payment is dispersed and make another full payment say a week later could this be considered and logged by the bank as an additional, but separate payment? My hopes are to make a payment near the beginning and end of September, then the October payment would be made on time shortly after the late September payment. My thinking based on the courts payment verification form is that each payment fills a slot on the form for payment #, but is not calendar based. So 60 mortgage payments may reflect a date when made, but all 60 slots would be filled.
I hope that makes sense.

[switch625]

I'm post-petition but still pre-confirmation and I've been paying my mortgage and HELOC anywhere from 1 to 2 weeks after the due dates with no consequence or late fees.

I should know the answer to this but does the stay remain in place after confirmation until discharge?

[BNKRPTinNC]

Not trying to hijack thread but this has something do with owning a home. We had some county taxes that were not paid. We were completely unaware but were notified by the mortgage company of a tax bill that had not been paid dating back 5 years, the beginning of our 13. Now I had been paying all taxes outside of plan except for the first year and not once was there any indication of a past due amount. Somehow it got missed in the initial filing and the laws being what they are the county, apparently, could not attempt to collect while in the 13. The amount was less than $50 but there was interest dating all the way back. It would suck big time if the banks could actually ding you and not tell you about it until after you have completed your plan and then tell you to pay up or else, which was pretty much the attitude I got in a letter from my lender.

[dmc-2008]

I hope my payment hits tomorrow or I will be late too cause of this holiday!

[spidge]

I hope my payment hits tomorrow or I will be late too cause of this holiday!

What do you consider late?

[dmc-2008]

What do you consider late?

After the 10th but it hit today!!! Yay