How to send funds for mortgage?

[BoxerLover]

I am going to bring my mortgage contractually current and then convert my chapter 13 to a chapter 7, because I don't want to lose my home. My question is, if I send a lump sum payment for the mortgage payments, do you think they'll apply accordingly? I owe a total of 9 payments. Would it be safer for me to do one payment each day over 9 days? I don't want them to apply it do my negative escrow, late fees, etc. I want it applied to the contractual due payments to bring it current.

Karie

[Peeps]

You could probably send a letter with a lump sum payment (if you think there is risk in sending one big payment, think of how many opportunities the mortgage has to screw up nine separate payments). In the letter, be very clear about how you want the money applied to your account. You could also call in advance, explain what you're doing, and then ask if you can send the payment to a particular account manager's attention. They may not be equipped to answer that, but it doesn't hurt to ask. Keeping a copy of the letter and sending the payment via certified mail might be prudent, too. Best of luck.

[sh9730]

I dont have an answer to the payment type, BUT, Im NOT so sure you will be able to call yourself "contractually current" for purposes of saving the house after CH7 if you have negative escrows etc. I am in CH7, and want to save the house, but am behind. I think for me to become completely "current" to do a pay and stay (safely), I would need to pay ALL monies due, including escrows, late fees, as well as (in my case) any fees associated with my CH7 filing (they filed and withdrew a motion to lift stay etc) before they would consider me no longer in default.

Anyone know if I am wrong about that? For me might make a difference in my approach...

[BoxerLover]

I've been told that they will spread the negative escrow over 60 months. I know you have to be 60 days delinquent to even start a foreclosure process in Wisconsin. Did your attorney tell you that you'd have to pay all the "fees"?

[sh9730]

Hmm....I am doing my negotiating with Chase outside of my attorney. He signed a form saying it was ok for me to talk with them, but beyond that he is not involved as it is not included in my BK fees and I didnt want to pay him to do it.

I was almost 120 days delinquent when I filed BK but they had not started any official foreclosure activities at that point even, just the scare letters. I did have a repayment plan in place with them to bring me current over about an 8 month period, but I filed BK for other reasons before I made that first payment, and then once I filed that payment plan became invalid (see my post in the foreclosure section RAT RACE). So, as a result they say I have to try for a loan mod before they will even discuss any repayment plan, and of course as I said I now have the legal fees to add to the tab also.

But, I think that as I stand now, I am in default...and the only SURE way to cure it is to pay the TOTAL amount due, including the extra fees. Will they offer me a payment plan in the end if they do not approve a loan mod? I dont know yet, they acted like that was still on the table when talking to their BK department on the phone, but they said I have to go through the modification process first. If they will approve a modification, I will take it, even though it wont lower my payment by much (Im just over 31% now), but it will mean I only have to make "normal" payments, as opposed to "super" payments in a catch up (repayment plan) as they will tack on all the other stuff into the "silent second" at 0% interest and payable only upon sale or refinance.

So, we ll see.....but my bank so far has not agreed to a repayment plan while in BK...for any parts of my payment...escrow or otherwise.

YMMV.

ETA: Also, my understanding is that any modification process entered into while in active BK requires trustee approval, but I also understand that as long as there is no reaffirmation involved (here in AZ the court will not approve reaffs as they do not believe they are in our interest - and from what I ve learned here they arent!), they wont oppose the mods.

[BoxerLover]

Thanks for your response. It sounds like they aren't in a hurry to foreclose on you, that they'd rather work something out. Good luck