maryv Posted April 3, 2008 Report Share Posted April 3, 2008 Hi all! I filed for Chapter 13 BK in January 2008. I have been making my current mortgage payments to the bank in addition to the trustee payments. My mortgage company is applying my current mortage payments to the mortgage payments that are in arrears. Here's my question is that the way it should be done? I thought the trustee payments I made were to be applied to the mortgage payments that are in arrears. If I'm correct about this, how do I get my mortgage company to correct this? I've called my lawyer and he hasn't called me back. Big shock. Thanks in advance for your help. As always this site is awesome and you guys ROCK!! Link to comment Share on other sites More sharing options...
Methuss Posted April 3, 2008 Report Share Posted April 3, 2008 What the mortgage company is doing is called using a suspense account. There is varying case law on this. Essentially it isn't against the bankruptcy code as long as they are not assessing ANY late fees to the account or reporting your account late to the bureaus.Some mortgage companies assess late fees against the account by using a second set of accounting books seperate from your account statements. Then when you go to sell the house or when the BK case is over they try to whack you with everything they have been piling up in secret.As long as you make absolutely sure you have copies of all your cleared checks and you complete the chapter 13 plan to show you kept to the terms of the plan, any attempt to collect fees assessed during the plan would be a bankruptcy code violation. The problem is most people get stung years later and don't have their records any more. Don't make that mistake. Link to comment Share on other sites More sharing options...
amortgageman Posted April 3, 2008 Report Share Posted April 3, 2008 I agree with Methuss' reply all the way. You need to get out in front of the mortgage company now, while you are in Chapter 13. I have seen several occasions where someone would get through the Chapter 13, only to have the mortgage company come back the next month charging the borrower several thousand dollars in fees. I believe, but not absolutely sure, that this happened to "almost there," a long time member of this site. After this happened to her, we began the Mortgage Fraud section. There are a couple of links in there that will lead you to many other examples of "Lenders Stealing Your Home." Link to comment Share on other sites More sharing options...
maryv Posted April 4, 2008 Author Report Share Posted April 4, 2008 Thank you both! Both of you are 'da bomb diggity (as my 14 year old niece would say). Methuus, that's exactly what they are calling it, a "suspense" account. While I haven't yet, let's say my current payment is due by the 15th of the month and I paid the current payment after the 15th but it was in the current month the payment was due, can they still charge me a "late fee" even though I'm in chapter 13 bk? They have been charging me late fees (it shows it on the statement) and I have a "Late fee" balance of $350+ from the payments I was behind when I filed bk that still show up.Isn't that late fee balance supposed to be included in the figure that the mortgage company's (WAMU) atty. gave to my attorney when I filed bk?As always, thank you so much! Link to comment Share on other sites More sharing options...
LadynRed Posted April 4, 2008 Report Share Posted April 4, 2008 You might want to read this:http://www.bankruptcylawnetwork.com/2008/03/31/mortgage-company-abuse-of-bankruptcy-laws/ Link to comment Share on other sites More sharing options...
Methuss Posted April 7, 2008 Report Share Posted April 7, 2008 We have Wells Fargo and they still charge us a late fee after the 15th. I can't understand their way of applying the funds. We pay every month and it shows our next payment 12/01/07, how can that be?If this is under a chapter 13 bankruptcy plan, then keep track of it all. At the end of your plan, or if they file additional payment requests with the trustee, then your attorney should do a full audit and hammer them for violations. Link to comment Share on other sites More sharing options...
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