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BK under old law and mtg co


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Lady/Charles..maybe you can help.

I think I know already what I need to do here but I want to run this by ya'll first.

The day before the laws changed we filed a 13 on 44k. The debt was nothing, it was to save the house from foreclosure (6 months behind due to family illness).

Nov 05 I sent my first mtg payment into Aurora as instructed by my atty. Aurora returned the payment citing they could not accept a partial payment. My atty said that they had not received my BK papers and I turned the check and the letter over to my atty who said he would take care of it. ( should have been flag number one LOL)

so fast forward to today. My 13 is in a 100% plan and i'm 7500 and 30 days away from closing it out.

I got a nice form letter from the mtg co that I had a surplus in my escrow and asked what I wanted to do with it. So I call up the mtg co and they tell me its 1900$, I tell them to apply it to principle.

They pop up with they can't that I'm 2 payments behind. So I ask how I can be in bk and 2 payments behind and they haven't done anything about it. They say they are and they are in the process of drawing up the docs to have my bk dismissed and the house foreclosed on.

After an hour on the phone with them I find out:

They counted the first payment I sent to them and they sent back as late. - my first month behind.

I have a partial credit of 900$, I still owe 750 to make up the 2nd month I'm behind. How I have a "credit" and how I'm 2 months behind I'll never know. They couldn't tell me over the phone, but they are sending me an itemization of the account and payments they have rec'd.

During the past 1.5 years I've spoke with Aurora many, many times on many occasions. One was when they didn't pay my taxes out of escrow last year. The other was when my HOI went BK and I was forced to change HOI. I went for 4 months without HOI and daily calls to them before I got them to pay my premiums.

Through all of this, no one EVER mentioned I was 2 months behind until last week.

I call my atty ready to flip and he says that its their barely legal way of getting you and ALS is the worst at it. That they (ALS) never really would have filed foreclosure papers on me because if they had I could have taken them to court and won.

I was 2400~$ behind, luckily i had it to pay on the spot to stop the foreclosure.

Now i'm ticked!!!!!

I have paid them on time for 1.5 years and I was hoping to get a letter of good credit with them and to get them to report that on my CB's in hopes that I could refi or move when the bk is discharged. Now I have no good credit to go on and they say I was 2 months behind forever.

How can I be 2 months behind when I'm supposed to "start fresh" in BK?

Their statements were impossible to read and the agent I spoke with that told me about this said I would have never known from the statement that I was behind. its said this whole time I was 13K in arrears. It wasn't broke down to say "before bk" and "after bk" balances.

Aurora isn't reporting on my credit and hasn't since the BK. As a matter of fact NO one is reporting on my credit and I'm sure my score is in the 520's. So I can't dispute this with the CB and have any legal arm to back me up or force them to do anything right to fix this.

So I think all I can do is fight this internally with them and then try to get them to report or give me a letter of good credit from Nov 05 till now.

My atty isn't worried about it and honestly he's been a bump on a log ever since we filed - so I won't get much help from his lame butt.

Do I have other options? Remember, I filed under the OLD laws...so I don't know if that helps or hurts.



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They say they are and they are in the process of drawing up the docs to have my bk dismissed and the house foreclosed on.

They can't do that. The WORST they can do is file for a relief from stay to go ahead with forclosure - -and you can object to that motion.

I assume you've been paying the mortgage OUTSIDE the plan, meaning not thru the Trustee ??

Arrearages are most often paid THRU a Ch 13 plan, since Ch 13 is the number 1 reason most people file to 'save' a house. Unfortunately, you cannot force them to report, it is not mandatory. Why they would stop reporting after you filed BK on a secured debt is a mystery, most secured lenders keep right on reporting in a Ch 13. One thing is sure, you cannot have any lates or derogatory remarks on debts in bankruptcy.

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Yes, the mtg is paid outside the 13. No I never would have been late, it was explained in detail to us the importance of paying on time so I have this whole time. So to find out I was 2 months behind was a shock to say the least.

My plan WAS to get the 13 discharged and then to ask them to report my past credit history. So now, I essentially have no new good history =(..I guess non is better than bad.

They way this 13 has worked I really can't even get a letter of credit from the trustee as the 13 has been paid in bulk payments.

So on the mtg company unless I take them back to court (and in the bk court as my atty said) I guess really don't have anything..and I can't really even take them to court since they didn't "do" anything formally.

I was really afraid of that too. Talk about starting from point ZERO!

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