keep current on mortgage when filing chapter 7??!?!?!

[IamOld]

Thanks JCJ - the problem is that where I live now, RENTING is essentially MORE expensive than if I just pay the mortgage especially when the tax break is taken into consideration. Even if if I forget about the taxes, actual cash money wise, it is no cheaper to rent.

On the personal side, when I was a kid, I had to move around a lot...and to me if my kids can have stability for a few more years, than at least I was able to give them soemthing I never had...

[IamOld]

True PANDORA - but the cash issue is that renting here is physically going to cost you the same, AND I don't think with my present credit anyone is going to rent to me...although my mother would cosign - she's retired but has superb credit...

[Freddy03]

IamOld - I just want to give you my personal experience on this issue----I used my mortgage payment (big mistake) to pay the attorney to file, so when we filed, my mortgage payment was less than 30 days late, once it got over 30 days late, mortgage company filed motion for release of auto stay, which was granted. We scrambled to gather up enough money to get our mortgage current because we also have no intentions of leaving our home. As far as the payments being on time, one day late or anytime in the grace period, I think each mortgage company has their own rules on that in a BK situation. I called the mortgage company every month to make the payment so it would be posted the same day and not take any chances. We are still waiting to be discharged and I have regained access to my online account for about 2 months now. As I said, using our mortgage payment to pay the lawyer was a big mistake, most of my unsecured debts were only 30 days late or less, and I feel like we rushed into filing just to stop the harrassment of the phone calls, another mistake. I work from home, so the calls interferred with my production of income. So, my advice, don't rush into filing and keep your mortgage current NO MATTER WHAT!!!

Ok I'm still trying to figure this all out for myself. So you were less than 30 days late and the mortgage company filed a release of stay - so with that they requested you to pay both payments?? or what?? what would have happened if you didn't make the payments. What if you wanted to do a modification? Thanks

[csonly]

Freddy - I'm not sure if I replied to this or not, so will do so again. My mortgage is with GMAC. We were 43 days late on the payment when they filed the motion to lift the auto stay. This was the first time we were ever past the 30 day late mark. As I said before, we scrambled and got current very quickly. The auto stay was lifted and we have been currrent ever since and not a peep from the mortgage company. They did tell me it was okay to pay in the grace period. It also took awhile for my first few payments to be posted to our account. We get a statement every month, but of course, it is the special wording for BK. Hope this helps.

[JJCA]

It has been suggested that one 'find out what the rules/norm is in your area' regarding foreclosure. Any advice on HOW to do that? Where to look for this info. I too am in CA. Don't know where to begin to find this info at.

In my situation, The attorney I had consulted suggested we stop paying our mortgage (since we truly don't have the ability to continue making payments) and then either be willing to let the house go in foreclosure or hope that by the time it came to that point, our financial status had changed enough to 'save the house' should we be able to & decide to do so. They implied it could easily take a year or more...which seems true (and why not live here for free they said), but seems it could also be 6 months, or less?? Did not say that going into BK being behind in payments would/could be an issue though! (and I keep reading here it can and often is an issue) Either way, BK is now probably on hold for us, and we are back to wondering how long a foreclosure might take..with or withOUT BK!

Does it ever really END!?!
JJ...

[Freddy03]

Freddy - I'm not sure if I replied to this or not, so will do so again. My mortgage is with GMAC. We were 43 days late on the payment when they filed the motion to lift the auto stay. This was the first time we were ever past the 30 day late mark. As I said before, we scrambled and got current very quickly. The auto stay was lifted and we have been currrent ever since and not a peep from the mortgage company. They did tell me it was okay to pay in the grace period. It also took awhile for my first few payments to be posted to our account. We get a statement every month, but of course, it is the special wording for BK. Hope this helps.

Thanks - sorry to be a pain but I'm trying to understand this b/c I will be late when I file. So if you did not come up with the payment to get current quickly what would have happened? Doesn't the mortgage company still have to follow state laws before it can foreclose? I guess I"m just confused b/c I asked this question a few months back and everyone said it wouldn't be an issue. Thanks again.

[csonly]

We paid both payments to get current. They didn't tell us we had to, but we didn't want to take any chances, even though with only being 1 month late, I don't think they could start foreclosure. Honestly, I think they just wanted to get that "technicality" out of the way. Think about it, we filed BK, were just over 30 days late (for the first time ever), so they wanted to get the upper hand in case our intent was to walk away from the house. As far as the modification, I have no clue about that. I think if you stay current or in the grace period, they may not flinch, but once you hit the 30 day mark, that raises a flag for the mort co.

Iamold - As far as a 401K loan, you borrow the money against yourself, so really there is no penality or fees associated with doing that. I don't see any problem with going that route, but not sure how that works in and around filing BK.

[Freddy03]

We paid both payments to get current. They didn't tell us we had to, but we didn't want to take any chances, even though with only being 1 month late, I don't think they could start foreclosure. Honestly, I think they just wanted to get that "technicality" out of the way. Think about it, we filed BK, were just over 30 days late (for the first time ever), so they wanted to get the upper hand in case our intent was to walk away from the house. As far as the modification, I have no clue about that. I think if you stay current or in the grace period, they may not flinch, but once you hit the 30 day mark, that raises a flag for the mort co.

Iamold - As far as a 401K loan, you borrow the money against yourself, so really there is no penality or fees associated with doing that. I don't see any problem with going that route, but not sure how that works in and around filing BK.

Thanks!!!

[csonly]

Freddy - here is the way I understand it. If you are only 1 month late on your payment, I don't think they can begin f/c proceedings. I know that each state has different laws on this, but I think most commonly, you have to miss 3 payments before they can start proceeding to the steps of f/c. Personally, from day 1 our attorney said to keep the mortgage and car payments current. I called the mort co and they said it would be okay to pay in the grace period. I also think the speed of the f/c depends on the mort co. We have a house beside us that has been vacant for over 3 years, they are just now coming to take pictures, etc. This is definitely a foreclosure, but I have no clue of the time line involved. Now on the other side of the coin, the house across the street from me, was in f/c and sold to the people that live in there now a few months ago, that house was only vacant a few months before the new family moved in. For 30 days late, I wouldn't worry too much about it, but if that 30 turns into 60, 90, etc., I think you need to worry. Again I think the mortgage company wanted to get the stay lifted in case we were going to not pay and let the house foreclose. Maybe it was just a scare tactic, but regardless, it worked. If you are 30 days or more late when you file, I would expect for your mort co to motion to lift the auto stay, but really it doesn't matter in the long run, as once you are discharged, you are no longer protected from the auto stay anyway, it just happens sooner rather then later.

[sunshinepa]

Freddy.........sort of in the same situation.......going to ask my atty Friday if I can be late for 4/1.......make up both pymts 4/20. Filing mid-april but due to rush from lawsuit need to finish paying atty and get moving. Lol.....will let you know answer he gives.

csonly.........how long once filed did they request lift of auto stay?

Sorry all, did reply as things were posted but I guess they went to lala land........ummmmm???

[csonly]

sunshinepa - They filed for the auto stay to be lifted when we were around 43 days late. It was granted a few weeks later, which was sometime in December. We have been current since and haven't heard a peep from the mortgage co. and not sure if you saw my other post, but they gave us online access again shortly after that. If you are filing mid April and plan to catch up payments by 4/20, you will probably be current before they even know you filed.

[sunshinepa]

TX cs...........actually a typo, will do both 4/1 and 5/1 payments on 4/29 if atty says it's ok. More concerned about keeping it paid after filing and throughout. Will have to call them once filed I guess. Don't want to do that now as they are one of my "unsecured" and rocking the boat won't do at this point.

[Freddy03]

Freddy - here is the way I understand it. If you are only 1 month late on your payment, I don't think they can begin f/c proceedings. I know that each state has different laws on this, but I think most commonly, you have to miss 3 payments before they can start proceeding to the steps of f/c. Personally, from day 1 our attorney said to keep the mortgage and car payments current. I called the mort co and they said it would be okay to pay in the grace period. I also think the speed of the f/c depends on the mort co. We have a house beside us that has been vacant for over 3 years, they are just now coming to take pictures, etc. This is definitely a foreclosure, but I have no clue of the time line involved. Now on the other side of the coin, the house across the street from me, was in f/c and sold to the people that live in there now a few months ago, that house was only vacant a few months before the new family moved in. For 30 days late, I wouldn't worry too much about it, but if that 30 turns into 60, 90, etc., I think you need to worry. Again I think the mortgage company wanted to get the stay lifted in case we were going to not pay and let the house foreclose. Maybe it was just a scare tactic, but regardless, it worked. If you are 30 days or more late when you file, I would expect for your mort co to motion to lift the auto stay, but really it doesn't matter in the long run, as once you are discharged, you are no longer protected from the auto stay anyway, it just happens sooner rather then later.

Thanks again See with my situation I have been late on my mortgage since the whole BK process started. I'm hoping to do a non recourse modification after discharge b/c my mortgage is in the $1600 and that does't include ins or taxes. So it's pretty high for us.

I emailed my attorney yesterday and he said it shouldn't be a problem. If I can I'll hold off filing as long as possible - it would actually benefit me more if I could file in July b/c of DH's unexpected bonus he recvd in Dec. If I could hold off the judgment creditor that long - that's what I plan on doing. Then I would be current on my mortgage and wouldn't have to worry too much about my +DMI.

[IamOld]

Thanks so much to everyone.

Freddie, I'm kind of in the same boat...except the idiot Mort co - it LOOKS like - they paid about 1400 to my locality for property taxes which they - the mort co - claim is delinquent - it isn't-it's being paid in installments as is PERMITTED by my locality. So now I'm waiting for that shoe to drop...

[catlfuzzy]

Did I read into this correctly that upon filing Ch. 7; the mortgage accounts (Wells Fargo) won't allow another payment (account locked due to STAY)...I am current and wish to remain that way. Can I continue to pay after filing?