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We Are In a Chapter 13 Bankruptcy and Our Mortgage Company Wants More. – Dea

“Dear Steve,

We are 2 yrs into a chapter 13. Our mortage lender has filed relief of stay due to post arrears in the amount of $3000. This is a result of an increase to our monthly mortgage payment that we were not aware of. This increase was allegedly in effect when we initially filed chapter 13.

Was the mortgage lender responsible to notify our lawyer or the court of the increase or the correct payment amount when we filed chapter 13? What options do we now have?

Dea”

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The Answer

Dear Dea,

Now that’s an odd and interesting situation.

Was the mortgage company sending you monthly statements that did not show the increase?

Was the trustee not being notified?

Did the mortgage company initially balk at the payment they were to receive?

It seems like you need to go back to your bankruptcy attorney and try to get some answers if this is just an administrative mess or the ball got dropped somewhere along the way and an insufficient payment was originally proposed.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

We Are In a Chapter 13 Bankruptcy and Our Mortgage Company Wants More.   Dea
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Dea

    This is the 2nd time we have encountered this problem with our lender since filing chapter 13. Each time the motion for relief of stay is filed, we have to pay our lawyer. Both times, the lender says that we are 3 monthly payments in arrears but we have proof of every monthly payment. In addition, the monthly payments are listed in the motion as up to date. We feel that the lender is trying to pressure us into paying an additional $3000, which they say we owe, due to an increase in the monthly payment that occurred before we filed for chapter 13. Shouldn’t the mortgage lender have corrected the monthly payment due at the onset of the chapter 13 process? The motion for relief of stay papers chronicle all payments and show a monthly deficit since May 2009. The lawyer fees associated with this issue is not fair to us. We have very little money left over monthly as it is. We don’t receive any correspondence from our lender and rely on our lawyer to represent us. How do we stop this from happening? What can we do?

    • http://GetOutOfDebt.org Steve Rhode

      Unfortunately it sounds like you are doing everything you can. Does your lawyer offer any advice to prevent it from happening again?

    • http://GetOutOfDebt.org Steve Rhode

      Unfortunately it sounds like you are doing everything you can. Does your lawyer offer any advice to prevent it from happening again?

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