Is This Legal?

[Ann]

We are awaiting discharge next week (keeping fingers crossed) and was just thinking about a post from a few days ago when someone here said mortgage companies cannot collect late fees while in bankruptcy. Well, I remember my mortgage company just last month telling me that after we are discharged they will tack on any late fees we incurred while in active bankruptcy. We were late by 5 days (too long to go into detail with) so my question is can the mortgage company do this and is this legal? What if we are late again after the discharge? If there are any late fees can I be held responsible for them even if I did not reaffirm? I know my auto loan company said they cannot charge late fees while in bankruptcy. We did not reaffirm the first mortgage and am hoping to do a settlement with our second. Can anyone tell me if this sounds right? Thanks!

[tobee43]

are you surrending the house??? if you did not reaffirm and surrendered the property then the property is the banks collateral...which is the house. if the bank or it's attorney's attempt to seek fees etc from you, it is pursuant to the state foreclosure litigation that they will not be able to collect pursuant to the federal order by the judge.

if they continue to attempt to collect the fees you can file a motion for creditor misconduct.

[SMinGA]

If you intend to stay in the house - then you must pay as agreed. Including late fees if you are late according to your terms. If you don't pay as agreed, they can charge late fees and ultimately can start foreclosure to reclaim title.

If you let the house go, you owe nothing. But if you want to keep living there, you need to keep paying and that includes fees.

[tobee43]

SM...i agree...but i'm certain if the OP surrendered or not???

[SMinGA]

From prior posts, I believe Ann is wanting to keep the house & try to settle the 2nd.

SM...i agree...but i'm certain if the OP surrendered or not???

[tobee43]

those banks never quit!