A new day, and new worry. Being current on mortgage before filing a CH7.

[JEM]

We are FINALLY caught up that one late payment on our mortgage that we've being rolling for quite some time now. However, the late payment "fees" are still outstanding. I believe the lady I talked to the other day said $392 were outstanding in fees.

How big of a deal is that going to be when we file? There is NO WAY we're going to come up with another $392 before our bankruptcy is filed. (The attorney's office today said they were planning on it being filed by the 28th of this month--we do our paperwork on Tues the 18th)

If we can get some of it caught up by the 341 meeting, will that help?

Calling the mortgage company now while they'll still talk to me and asking them to waive part of the fees? Tack them on to the end of the mortgage maybe?

If it's not one thing, it's another that I'm worrying about. I'd hate to lose the house over FEES.

[helpme2010]

Are you trying to keep the house after the bankruptcy? Because if you are going to let the house go, then stop paying your bills and start saving your money. You will need every dime you can save up. If you are trying to keep the house, then I don't know what the strategy is in this situation.

[JEM]

Yes. Keeping the house. Obviously not far enough behind to file a Ch13, just to overcome the late fees that we will still owe. Is this a gray area, or something they can actually try to take the house over?

[tjc]

Have you asked the bank about repaying those late fees over time with a higher mortgage payment each month until paid off? (If this is affordable to you of course).
Have you made a payment since catching up? If so, do you know how the payment was applied to your account?

If not, then I would suggest calling the bank and asking them how they will apply your next mortgage payment with regards to the late fees. If your bank is anything like ours (Chase), then you'll probably get someone who has NO clue what they're talking about. If you call a few hours later, you'll probably get a different answer, and so on. I would ask to speak to a supervisor and don't get off the phone with them until you're certain they won't apply part of your mortgage payment to your outstanding fees. If that happens, then your mortgage payment is considered "partial" and will end up showing 'late' because of the partial application of funds to your mortgage balance. Find out what your banks policy is.

As far as them coming after you over $392, I personally don't see them doing that. We were 2 months behind and they had us in collections, however, no foreclosure proceedings had begun. Prior to our modification, we were 4 months behind (due to "partial payments" that THEY arranged for us) and although we did get notices of default in the mail each month, we were never served with any court documents. Generally, the banks won't come after your house for such a small amount owed. Be sure to check their policy on applying payments when late fees have been assessed though. Maybe they will offer to let you pay it off over a few months with higher payments. Good luck!
OH, and if your attorney hasn't already asked, he/she will ask if you're current on your mortgage. Tell them yes, however, there are outstanding late fees from a missed payment earlier.

[tcreegan]

Hi JEM,

tjc has some great advice, asking them to waive the fees or spreading them out over several months.

If we can get some of it caught up by the 341 meeting, will that help? ...the 341 is huge to us, but for the mortgage company the file date and discharge date are what matter most.

Calling the mortgage company now while they'll still talk to me and asking them to waive part of the fees? Tack them on to the end of the mortgage maybe? ...they will still talk to you, and even better, they will talk to your attorney. Once you file they do have restrictions on contacting you, but you can contact them. ..or better, your attorney can contact them.

$392 is a lot to us, but to the mortgage company that is chicken feed. Talk to your attorney, they should be able to handle this, no problem.

Hang in there!

Tom in Colo