chapter 13 and interest on Mortgage

[michaela]

I am in a chapter 13 and every month I send my payment into CHASE to pay for my mortgage. Every 4 months my trustee sends a payment to CHASE usually it around 16000. Out of the 16000 more then half goes to interest and the rest to principle. What I don't understand is why when I get my form in January from the mortgage company showing how much interest I paid for my income tax it does not include the trustee money. Why is that?? Its my money!!! Can someone explain to me

[boomer2298]

I have had the same problem in PA with Wells Fargo. PA is a garnishment state so the trustee makes the payment. I just for the second time had to have Wells do a accounting bring down of my account and properly apply my principle and interest. They were putting it in a "hold account" applying it as they saw fit but in reality it grew to a five figure amount. How I caught this (2nd year in a row) is as you have seen the mortgage interest isn't matching up at tax time. We will see what this year brings. At any rate with them it appears to be an auto accounting issue. The payments being sent do not have any designation as whether they are to be applied to arrears or the actual current running balance. So they just put them in a hold account until either a red flag comes up or you call and complain. Just received a multipage "correction" form Wells last week. I suggest you review yours with an accountant.

[justbroke]

You may need to calculate the interest separately. I had this same issue in my Chapter 13. In fact, most of the interest paid was not included in the 1098. I believe this happened because I was paying arrears and the arrears didn't seem to get calculated correctly. When filing my taxes, I selected that I was using different numbers than on the 1098.

[boomer2298]

You may need to calculate the interest separately. I had this same issue in my Chapter 13. In fact, most of the interest paid was not included in the 1098. I believe this happened because I was paying arrears and the arrears didn't seem to get alcualted correctly. When filing my taxes, I selected that I was using different numbers than on the 1098.

You need to contact them and tell the to recalculate. Because of the automated accounting system it will never be correct in a 13. It will always either go to arrears or a "hold account"

[BNKRPTinNC]

You may need to calculate the interest separately. I had this same issue in my Chapter 13. In fact, most of the interest paid was not included in the 1098. I believe this happened because I was paying arrears and the arrears didn't seem to get alcualted correctly. When filing my taxes, I selected that I was using different numbers than on the 1098.

This particular post got me to thinking. My 1098 showed that the interest I was paying nearly exceeded the amount of the total mortgage payments for the year. Here all these years I thought that the exorbitant interest rate that I was stuck with throughout the 13 was to blame. It just dawned on me that there was interest owed because of the arrearage. Practically discharged and learned something new. Thanks justbroke.

[justbroke]

This particular post got me to thinking. My 1098 showed that the interest I was paying nearly exceeded the amount of the total mortgage payments for the year. Here all these years I thought that the exorbitant interest rate that I was stuck with throughout the 13 was to blame. It just dawned on me that there was interest owed because of the arrearage. Practically discharged and learned something new. Thanks justbroke.

Anytime my friend... anytime! (At least they calculated the impact of arrears on your interest paid, correctly! In my case, my loan was interest only, so all of the arrearage payments were nothing but interest.)

[michaela]

Thanks for the responses. I will call CHASE this week and see what they say. If anyone should call there mortgage company if you could update us I feel it will help us all.

[makeupho]

we had the same issue with Citi in the years that our arrears was paid by our Trustee. when we had our taxes done, the amount we had the preparer use was the total of the payments from our Trustee (we printed this from her website) plus the amount on the form from Citi.

[justbroke]

we had the same issue with Citi in the years that our arrears was paid by our Trustee. when we had our taxes done, the amount we had the preparer use was the total of the payments from our Trustee (we printed this from her website) plus the amount on the form from Citi.

Exactly what I did, only my bank was Bank of America.

[michaela]

Okay but I cant take what the trustee sent because some went to principle and some went to interest(unless your mortgage in interest only). So I am going to get a printout from CHASE Showing my payment for 2013 and go from month to month and add up everything that went to interest. Thanks everyone for the help