Question #2 from bluesky in NC....

[bluesky]

My next question for the forum concerns "what is a late payment?" mortgage #1 for me is always due on the 1st but almost every payment I make is between the 1st and the 15th, any payment after the 15th a late fee is charged, guess what you call a grace period?? Is it ok to keep doing this even if I file ch. 7? I know it's a bad habit but it's been unavoidable up until now...

[hamburgervol]

I was about 28 days late each month for about 6 months. The mortgage company still sent me a reaffirmation agreement even when I was "late". I was never more than 30 days late. However, I am now caught up and will not be late again. I'm sure each mortgage company is different. It may help to call them and let them know of your intentions.

[Chowder]

My next question for the forum concerns "what is a late payment?" mortgage #1 for me is always due on the 1st but almost every payment I make is between the 1st and the 15th, any payment after the 15th a late fee is charged, guess what you call a grace period?? Is it ok to keep doing this even if I file ch. 7? I know it's a bad habit but it's been unavoidable up until now...

When I was finalizing the mortgage, the girl said "It's not late till the 16th". In two years before filing I never paid earlier then the 5th, and often paid on the 15th at the local branch.

[lrprn]

A lot depends on how anxious your mortgage company is to get their hands on your house.

Technically the vast majority of lending contracts state that your mortgage payment is due to your lender by its due date. Payments received during the grace period will not be penalized with a late fee, but technically they are not on-time.

Legally, your mortgage company does have the right to foreclose if your payment arrives after the due date if they decide they want to - a fact that some filers have discovered the hard way right after they filed thinking that because they paid the mortgage during the grace period that they were on-time. It's just that the mortgage company is very unlikely to come after the house unless they think they can significantly benefit financially from enforcing the due-date clause.

If you have filed, then start putting money aside so you can get ahead of your mortgage and start sending it 1-2 weeks in advance of your due date. That's peace of mind.....ahhhh!

[mom2three09]

We're with BofA and our payment is not techincally late til after the 17th. We filed in July. Sent our payment on the 10th last month. Heard nothing from them, so I guess it's safe to say they don't want our home

[bluesky]

thanks

appreciate the advice, the attorney fees will keep me from "getting ahead" of the mortgage due date for a while but after that I should be able to

[OhioFiler]

File after the 15th and your payment is made, no questions asked. It's not late on the date of your filing. You're current.

[Chowder]

"v. Make all regular monthly payments by the end of any grace period in the note or deed of trust."*

As noted in the text at the link, these are guidelines that are upheld in "75%" of cases.

http://www.canb.uscourts.gov/procedures/oak/newsome/chief-judge-newsomes-guidelines-practice-consumer-chapter-13-and-7-cases

[bluesky]

...thanks chowder

[liz417]

My mortgage is with Wells Fargo and I always pay by the 15th. I was a little confused too since I filed for BK if it was late anytime after the 1st. I called and they said the same rules apply pre bk, I have till the 15th Call and ask