Mortgage Question while in chapter 7

[Ann]

All,

I will be discharged (hopefully) at the end of August from our chapter 7 and was wondering what happens if you are late making your mortgage payment ( before the 30 day late fee is assessed) and before your discharge. I am wondering what the mortgage company will do if I am late making that payment. We did not sign a reaffirmation agreement but we are going to continue to make payments to keep our house. No, I am not trying to intentionally "ruin" my case. I was just wondering what might happen should I not make a payment. If we do not sign that reaffirmation agreement does that make us not able to make a late payment should that come up.

[albacore44]

I'm assuming your talking about the 1st mortgage ? Nothing, just dont let it go past 30 days. I'm usually 12-14 days late every month. if your talking about the 2nd........nothing. if its underwater they wont do anything.

[starr4law]

Essentially nothing would happen - at least not this close to your discharge. If you were behind at filing or shortly after, the lender could file a motion for relief of stay to continue pursuing a foreclosure. However, it takes time and $$ to file a motion in bky court and usually if a consumer is not behind at the time of filing, they don't bother with the motion even if you are behind later in the process.

Good for you for not filing a reaff agreement - just keep making your regular monthly mortgage payment on your own if you intend on keeping your home. Remember, they may not send you any statements while you are in bankruptcy since technically they are not allowed to contact you while you are under the protection of the bky court.

Good luck!