mortgage payments between filing and discharge?

[aquavir]

I spoke to my student loan yesterday and they said I do not pay right now, that after discharge payments will begin as if I never missed a one. I will not be behind by 4 months since I am not paying right now.

Watch out if you have any private student loans. My Sallie Mae consolidated loan was fine (I was already in forbearance, and now am paying automatically and the rate actually went DOWN!). However, Citibank had a clause in the loan docs saying that BK automatically defaults the loan, so even though I never missed a payment (they automatically stopped the monthly withdrawals when I filed, but before that I was current) I was sent to collections right out of discharge and had to work out a payment plan with the collection agency. So just watch out for any private student loans!

[tcreegan]

Hi aquavir,

Did you see a lawyer about Citibanks clause and forcing you into default? Technically that isn't legal....

The relevant law is 11 U.S.C. §541(c)

Not sure if it will do any good now...

Tom in Colo

[aquavir]

I wonder if they could wiggle out of it by saying that stopped paying through the BK process (of course they would have had to get a relief from stay, for which the never filed). It probably isn't worth my effort to fight it. I basically told the collection agency that I would pay $200 a month with no "down-payment" (they, of course, were following the "book" and started by asking for the whole 5K, then a settlement, then a payment plan with half down, then I hung up, then I called them back after getting back from vacation and offered them 200/month). The funny thing is, I'm going to end up paying much less now. This loan was for a bit over 5K and it was a 30 year note! So I was paying $50 a month automatically (so I never thought about it), which over the course of the loan would give them a sh*tload of interest. Now they took their insurance check and I'll have it paid off much sooner for much less! I guess they've never read "The Goose that Laid the Golden Eggs!"

Thanks for the advice; I figured it was dirty. Hopefully someone will find this post who has a much larger private loan...if I were on the hook for 50K and not 5K, I would definitely fight it!

[diesillady]

I have made my loan payments 30+ days late for the last 2 month and it was the lender who suggested it. We just paid our September 1st payment on the October 14th and told them we'd make October payment by November 10th and that was fine with them. Our loan is with BAC I think they just want the money at this time. You are correct they didn't allow single back payment until this year. Now I can just send the prior month's late payment through my bill pay and it is credit to our account, don't know if it will work if we where 60+ late. I'm will file Chapter 7 on the 26nd of this month and will make my last payment on my home on the 25th. I've already got my paper work. Since I was below the mean test with no assets I had paperwork done pro per with attorney consultation only cost $450. I will walk them in to Riverside court here in Ca pay my fees and hopefully in 90 days be free again. I will say I'm retain the home, but I have already decide not to keep it, we owe 274k and value on BK is 139k. We'll just save the payment money until they sale it and then we will get out. Maybe I'll take cash for key on a DIL of deal. If BAC does decide to object to the stay it's okay they have been taking minimum of 6 month to even get it to NOS status. This area (The Inland Empire) is so devastated by foreclosure it taking 6-12 months to get through the process. So if you don't plan on keeping your home I advise pay current month but that would be all I'd pay. I can and will rent the same home we own for half what it's costing us to live here.