wdspeedbump Posted August 3, 2008 Report Share Posted August 3, 2008 suppose you file ch. 13 to save your house from foreclosure. you go through the 2-5 years of bankruptcy payments, then get discharge on your unsecured debts.what happens to your mortgage? after being forced to take less than they want monthly for 5 years, how is the mortgage company going to react once the court no longer offers protection? Link to comment Share on other sites More sharing options...
bingo Posted August 3, 2008 Report Share Posted August 3, 2008 suppose you file ch. 13 to save your house from foreclosure. you go through the 2-5 years of bankruptcy payments, then get discharge on your unsecured debts.what happens to your mortgage? after being forced to take less than they want monthly for 5 years, how is the mortgage company going to react once the court no longer offers protection?That won't happen. The mortgage must be paid under the orginal terms during the 13. Any arreage may be included in the plan but, it must be repaid at 100%.There is a big difference in the treatment of secured debt vs unsecured. Link to comment Share on other sites More sharing options...
wdspeedbump Posted August 3, 2008 Author Report Share Posted August 3, 2008 mortgages are treated differently than normal secured debts. i know that much. no, the mortgage will not be paid off when thhe other debts are discharged. all other secured debts will be paid off.leaving my original question...wht happens to the mortgage? Link to comment Share on other sites More sharing options...
bingo Posted August 3, 2008 Report Share Posted August 3, 2008 after being forced to take less than they want monthly for 5 years, how is the mortgage company going to react once the court no longer offers protection?Your question has been answered. Your loan will not be modified just because you filed a Chapter 13. You must make the regular monthly payment plus, the plan must repay any areage at 100%.Once the Chapter 13 is discharged, it's business as usual. You just have to stay current. Link to comment Share on other sites More sharing options...
jq26 Posted August 4, 2008 Report Share Posted August 4, 2008 Bingo is correct. You pay your mortgage PLUS the arrearage and get current again. Then you stay current. Otherwise, bye bye house. Link to comment Share on other sites More sharing options...
charmgoodcredit Posted August 7, 2008 Report Share Posted August 7, 2008 Ok, so during the chapter 13 you are making the mortgage payments according to your bankruptcy agreement. Once that is all said and done you have to go back to making payments like before the bankruptcy or is it all due in one balloon payment? I'm a little confused. And if you come into some extra funds or your income situation changes can you send in extra payments or do you have to stick strictly to the bankruptcy agreement. Thanks Link to comment Share on other sites More sharing options...
jq26 Posted August 7, 2008 Report Share Posted August 7, 2008 During 13: you make your regular mortgage payment PLUS some sort of additional amount to "catch up" (ie: cure arrearage). Then once out of BK, you make your regular mortgage payment.If you come into extra funds you must disclose to the court and they will decide where it goes. Link to comment Share on other sites More sharing options...
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