QUESTION
Do you have a grace period when paying your monthly mortgage if you did not reaffirm during chapter 7?
Asked on Jan 17th, 2014 on Bankruptcy - Colorado
More details to this question:
I had filed bankruptcy (chapter 7) a few years ago and it was discharged already. I don't ever want to leave/lose my home. I didn't reaffirm my mortgage (apparently) and we are currently always about 16-25 days late on paying the mortgage payment but never 30 days late-EVER. Our loan was with Bank of America but recently got sold to Green Tree - BofA never harassed me before when making my late payments(I thought I had a grace period which was the 16th day. My mortgage is always due 1st day of month currently) but since Green Tree took over they start calling me by the 8th day, give or take. Green Tree is telling me that since I didn't reaffirm my mortgage, there is a stipulation that I CANNOT pay late even by a day. I need to know if this is true. I'm ready to call my bankruptcy lawyer to ask him this also. As of today, I'm paying this month's payment(Jan 2014) on the 24th. I know I will be getting a late fee of $64ish every month I pay late but can they put me or start foreclosure threats or paperwork if I keep staying late- just about 3wks late every month. HELP!
3 ANSWERS
2 Awards
Your contract controls. You'll have to locate it and review it.
Answered on Jan 22nd, 2014 at 9:46 AM
The contract you had before you filed bankruptcy is still the same contract you have now with your lender. You're not required to reaffirm a mortgage in a bankruptcy. But, if your contract says your payment is due on the first of the month and it's due on the first of the month. If your contract then says you have until the 16th of the month before a late charge is imposed then you have until the 16th of the month until a late charge is imposed. But, paying after the first is paying late. It just doesn't impose a late charge. You should try very hard, now that you filed bankruptcy, to make your mortgage payment on time so as to not have any complications with your mortgage company.
Answered on Jan 22nd, 2014 at 9:40 AM
Deborah F. Bowinski
If you pay the late fees with your late payments then you are probably okay. There is a misunderstanding, though, about payment due dates. The fact that a late fee is not imposed until the 16th of the month does NOT mean that the payment isn't still due on the 1st of the month. Not does it mean that you are not late with the payment as early as the 2nd of the month. You would be doing yourself a big favor and saving yourself a significant sum o money if you can find a way to shift your payments so that you are paying ahead rather than behind each month. If you are not including your late fees with your payments then eventually your fees will accumulate to be a large enough amount so that the lender may be toyed to begin foreclosure proceedings. This would be especially true if there is equity in the property.
Answered on Jan 21st, 2014 at 9:21 PM