When you are in a Chapter 13 bankruptcy and the mortgage company refuses to accept your mortgage payment, you need to call my office and set up an appointment with me as soon as you can. We must make sure that your mortgage payment is accepted.
Sometimes, when a person files a Chapter 13 bankruptcy, a mortgage company might refuse to accept electronic payment over the phone. This does not mean that they won’t accept a physical check from you. The best way to do it is to mail the check to the mortgage company return receipt requested. This way, you have proof as to when you mailed the payment so that they can’t try to stick you with late fees.
If they refuse to accept your check that was sent in the mail, we must find out why they are refusing it. Refusing your monthly payment is what a mortgage company usually does right before they are getting ready to foreclose on your house.
At the beginning of your Chapter 13 case, a mortgage company will sometimes make the mistake of ignoring that fact that you are under bankruptcy protection and that the past mortgage payments are included in the Chapter 13 plan. If this happens, I want to educate them with a written letter.
I’ve had some clients in the past who had their mortgage payments sent back to them and then they spent the money. A few months later, the mortgage company filed a Motion for Relief from the Automatic Stay and wanted to charge my client attorneys fees for the filing the motion. Even though the mortgage company created the problem by sending the money back to the client, they wanted to be paid attorney fees for the motion because the client was not able to bring the payments current.
Don’t allow yourself to put in this predicament. If they mortgage company sends back the payment to you, don’t spend the money! Save your proof that the mortgage payment was rejected. Call my office and lets make sure the mortgage company accepts your payment without trying to penalize you.