Received Acceleration Warning from Chase Today....We are in a 13

[alorth]

Something is NOT adding up. I don't know why Chase MORTGAGE hasn't gotten the message that their credit cards have. We filed BK as a 7 last September, and just converted to 13 in Feb. We stopped paying the Mortgage pmt with the pmt. that was due March 1st.

So we missed the March 1st, and now the April 1st payments, and we have ALREADY received this "Acceleration Warning"???

WTF?

I thought we'd have more time than this. Besides, they shouldn't be sending anything right? Because of The Stay? They say they don't see that we are under BK???

The Acceleration Warning says they are under no obligation to accept partial payments. So....does that mean they will continue with this EVEN if we make one payment and stay about 1 payment behind instead of 2?

And don't they have to LIFT THE STAY that they are violating before they do ANY of this?

I'm confused, and a little worried.

(We have the money to catch up right now, but if you've read my other posts, you know we're "stashing" the funds until we get through the confirmation hearing on April 26th and find out if they are going to officially demand that we leave the house and get lower cost housing in order to confirm our plan.)

[tobee43]

i' having an experience with chase as well and we surrendered our home over 4 years ago. first i rec'd a call a couple of weeks ago with what were our intentions with the property, which, by the way has been vacated for those 4 years.

i have gotten two more calls since, one last evening saying OH NO this is not a collection call!! i said YES IT IS because you refuse to stop them and you are in violation of the bk order and i am going to call my atty and now file a complaint, which is what i would suggest you do as well.

chase must be on some kind of band wagon, it's just they were suppose to catch a train and not a wagon, they still after all this time to have it together...you rec'd your notice, and i keep getting calls. (i have now blocked them, but i their phone numbers to report to the FTC as well).

i believe they are in violation with what they are doing and i would try to go after them if i were you.

best of luck!

[keepsmiling]

Ack Alorth, your case just keeps getting better and better. Well life is never dull.
PLEASE sue them for stay violation.
For ALL of us

[HHM]

Well, first, what is the plan here?

Why would you default on mortgage payments AFTER the conversion? You cannot cure post petition debts and that "money" you stashed, unless exempt is an issue, even in a chapter 13.

Did they file a Motion for Relief from stay in the 7?

[alorth]

Well, first, what is the plan here?

Why would you default on mortgage payments AFTER the conversion? You cannot cure post petition debts and that "money" you stashed, unless exempt is an issue, even in a chapter 13.

Did they file a Motion for Relief from stay in the 7?

No...they have never file a relief of Stay. THEY say they have never received notice of the BK, yet the 2 Chase CC's certainly have, and I know they ("Mortgage") have been mailed, faxed, and told on the phone.

We are not planning on a real "default", though I guess technically we are defaulting right now by having not payed. We are going to go in to a branch tomorrow and pay the 2 payments we are behind.

Keep in mind, we are doing this all WITH our Attorney's knowledge and blessing.

It was being done so that IF we were told that our Plan would NOT be confirmed unless we were paying less for housing, then we would have some money to move, and pay the necessary 1st and last month's rent, and security deposit of wherever we would end up going.

Another problem has arisen though, which is that NOBODY wants to rent anything decent to us while we are in a 13.

We really ought to be allowed to just stay in our home...especially since it is only 24% of our gross wages, AND we can make the payment AND pay something to the unsecured creditors, AND it is NOT a luxurious house, but it has a high payment due to the last re-financing at the highest possible appraisal where we took the equity out to pay creditors back in '08.

[HHM]

Okay...

But sort of a kooky strategy to be honest. There really is very rarely an issue with a mortgage payment being too high, the means test in both chapter 7 and chapter 13 contemplate "secured debts" above the housing allowance, so unless the payment is super high ($4000 per month), there really isn't going to be a problem. Sort of begs the question as to why file a chapter 7 first anyway?

In any event, I suppose you will be fine, but seems like a very awkward strategy.

[keepsmiling]

Alorth has an extraordinary case here, kinda like the carveout people.... but different. If you look back at some of his recent posts, it's the tt and judge that want him to stop making the payments! HHM, do you have any ideas for him? Talk about a rock and a hard place. I think these tt's are trying to break new ground. Maybe he'll write you a referral or a guarantee in order to secure the housing he's so sure you can get for less. Or maybe rent you a room in HIS house. Cocky snarky *#&!. Let him walk a mile in another's shoes.

I keep being reminded of Olivie's case, where she needed housing for 8 and the law didn't provide for that, so she had to fight tooth and nail for it. She did win, btw, against an unreasonable judge.
I have this fantasy where you wind up suing them for making your family live in a box on the street. And maybe even for making you sicker than you were before (I do hope that's not the case, but they are causing unnecessary, more than usual stress) At least, if they are going to take on this cocky attitude, keep a list of places willing to rent to open 13's at the price they insist you pay.

Some folks have found that a large enough deposit can go a long way towards securing a rental, especially with an understanding landlord. Have you tried that route?

I forget, is your house underwater now?
Too bad you didn't take the equity out in a second mortgage or a Heloc. Then it could have just been stripped or settled. Now there's a lesson they didn't teach us in school.
But go know.

Good luck as always. Stay strong.

[HHM]

Well, I didn't read prior posts, but in any event.

I would say this..."What do you really want to do? Where do you want to see yourself 6 months from now??

A funny thing happens in BK, people get so tied up in what they can and can't do, they lose sight of what they "want" to do.

So, if the house is totally upside down and the mortgage payment too high, even if you could save or stay in the house, do you really want too? Or, maybe the better question, "should you."

Bankruptcy is a means to an end. The end being debt freedom of one sort or the other. You need to decide What you really want?

[keepsmiling]

Just saw that you are 55K underwater. If you could only find a nice place to rent, that might be a good argument to do so. Maybe someone here on the board knows someone.... seriously... sounds like it's going to take some networking. Some folks here are getting the occasional principal reduction.... too bad the judge can't order Chase to do that.
Here's the link to some previous discussion:http://www.bkforum.com/showthread.ph...236#post555236

[keepsmiling]

This is all assuming, of course, that the judge really goes along with the tt and tries to break new ground here; and that the tt is not just using scare tactics. If he does, is there such a thing as a higher court for an appeal for bk cases?
Please note, it's significant- OP's mortgage payment is well within percentage guidelines. The tt is trying to make an example of him.

[alorth]

Hey all....sorry I didn't reply quicker.

As for HHM's question about what we WANT to do....I have faith housing will eventually recover, and I WANT to stay here the rest of my life, really.

We have looked HARD into rentals, but there is nothing in our school district, and very little in the surrounding area except for College Housing near the local university, and in older run down places in the city, where we don't wish to live.

Even with "tightening our belt" beyond what we've already done and looking into smaller places that are just hard to picture us in, finding a NICE, well taken care of place, THAT'S NOT FOR SALE, has been a fool's errand around here.

Also, we have already been turned down by 2 different rental condos because of the BK.

We don't want to find ourselves somewhere with a 1 year lease, and then being forced to move 2-3 times during the next 5 years because the landlord decides to sell, or whatever.