Question regarding Mortgage IIB

[Luvmy3kids]

Hi!

We have 2 mortgages that were included in bankruptcy. My 1st mortgage is sending us notices that are clearly trying to collect their payment and the paper even says that if the payment is not received in their office by the end of the month (last business day of the month), they will report to the credit bureaus.

We have been behind the past three months due to more of a loss in income, but we are officially current. Our May payment was due by the 15th, and on the 16th, this letter went in the mail. I paid May's mortgage on Friday.

So, my question is this...Are they allowed to try and "collect" on this debt and threaten to report to the Credit Bureaus? We have already been discharged.

Thanks!!

[LadyInTheRed]

It depend on whether you filed a chap 7 or 13.

If you filed a Chap 7, they shouldn't be trying to collect and shouldn't report late payments on your credit report. But, they can issue a notice of intent to foreclose.

If you filed a Chap 13, however, a mortgage on a residence you did not surrender was not discharged.

[Luvmy3kids]

Ugggghhh...I tried to include all the info and forgot something, lol!

It was a Chapter 7. We were a no asset case and everything went along smoothly ;)

It is an official Collection Letter. There isn't even that little disclosure: This is not an attempt to collect a debt...blah, blah, blah.

So far every month has been paid and we will make our June payment on the 3rd. We will officially be caught up on all bills, etc.

Thanks for the info. Should I say anything to them? I find it irritating that they are sending this and violating the discharge.

It depend on whether you filed a chap 7 or 13.

If you filed a Chap 7, they shouldn't be trying to collect and shouldn't report late payments on your credit report. But, they can issue a notice of intent to foreclose.

If you filed a Chap 13, however, a mortgage on a residence you did not surrender was not discharged.

[LadyInTheRed]

You could send them a cease and desist letter. But, one thing to keep in mind is that if they are threatening to report late payments, they may also report timely payments. If you send them a cease & desist letter, any positive reporting will probably stop too. If you think you are going to be able to get and stay current, it may be worth it to put up with some annoying letters to have the timely payments listed on your credit report. A paper shredder can be very therapeutic!

Now that you've sent the May payment, call the mortgage company and make sure they show you as current. I have read about people who think they are caught up but then find out additional interest, fees and penalties were added and their loan is still considered in default.