Ask Experts Questions for FREE Help !
Ask
    shagnasty's Avatar
    shagnasty Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Nov 8, 2007, 10:45 AM
    Creditor not applying payment
    When you are in Chapter 13 can a mortgage company take part of a payment and apply it to attorney fees and not notify you that it has been done? Then hold the balance of the payment and not apply it to the loan? Further charging a late payment fee even though the payment was not late, but because the mortgage company decided to use it in a different way than it was intended for.
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
    		  
    #2

    Nov 9, 2007, 08:07 AM
    Quote Originally Posted by shagnasty
    When you are in Chapter 13 can a mortgage company take part of a payment and apply it to attorney fees and not notify you that it has been done? Then hold the balance of the payment and not apply it to the loan? Further charging a late payment fee even though the payment was not late, but because the mortgage company decided to use it in a different way than it was intended for.

    If you have filed in Chapter 13 - and it would appear you have - this is a question for your Attorney to answer.
    s_cianci's Avatar
    s_cianci Posts: 5,472, Reputation: 760
    Uber Member
    		  
    #3

    Nov 9, 2007, 08:16 AM
    That sounds pretty irregular to me. If you are making payments in keeping with the terms and conditions of the mortgage agreement then you are not in default and shouldn't be considered as such.
    froggy7's Avatar
    froggy7 Posts: 1,801, Reputation: 242
    Ultra Member
    		  
    #4

    Nov 9, 2007, 08:15 PM
    I believe it may be. In your mortgage payment book, does it list something about how fees will be applied? Quite often there is a paragraph there saying how the money is applied, and if it says it will be applied to any outstanding fees first, and then to the payment, that's what you agreed to when you signed the loan.
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
    		  
    #5

    Nov 10, 2007, 09:27 AM
    Quote Originally Posted by froggy7
    I believe it may be. In your mortgage payment book, does it list something about how fees will be applied? Quite often there is a paragraph there saying how the money is applied, and if it says it will be applied to any outstanding fees first, and then to the payment, that's what you agreed to when you signed the loan.


    There very well may have been charges for the Bank's Attorney's appearance at the various Bankruptcy Court Hearings and these charges could now be your responsibility. In my area the Attorney charges between $500 and $1,000 to appear at a Bankruptcy Hearing to protect the Bank's interest. These charges have nothing to do with your original mortgage payment agreement and are in addition to your monthly payment(s).

    Again - I wouldn't fool around with this, particularly because you have (presumably) paid an Attorney to represent you at the Chapter 13 Hearing - you don't want to do anything now to put yourself back in jeopardy. Check with the Attorney who represented you.
    shagnasty's Avatar
    shagnasty Posts: 3, Reputation: 1
    New Member
    		  
    #6

    Nov 22, 2007, 09:57 PM
    Comment on JudyKayTee's post
    Acually I did talk to my attorney and she did tell me that the mortgage company could do that and did not have to take a partial payment so I had to send them the fees for them to have a complete payment.
    shagnasty's Avatar
    shagnasty Posts: 3, Reputation: 1
    New Member
    		  
    #7

    Nov 22, 2007, 10:00 PM
    Comment on froggy7's post
    You are correct. They can deduct from any payment outstanding balances from attorney fees then hold what's left until they have a complete payment. What is worse is they can start foreclosure while holding a partial payment according to my attorney.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Creditor refused payment [ 5 Answers ]

I live on the AR/OK state line, and there are what I call loan shark companies in OK. I am TERRIBLE with my money, so I often need help. Here's what happened to me today. The name of this company is world Acceptance in Arkoma, OK. I have been a 'customer' of theirs for MANY years. I'd say at least...

First line creditor refuses payment [ 8 Answers ]

My mortgager,Chase Manhatten J.P.Morgan, has refused a payment that was on time( I have postal records to prove this) and the have declared me in default,and set up an auction on my home. I have heard of a "notice of default" does this pertain to first line creditors? If so what statute covers this...

Creditor refuses partial payment [ 4 Answers ]

If I send in a payment to a place I owe money to and they refuse to take it, what can I do if they say the want more money or they want it in full?

Creditor lost $1,000 payment [ 7 Answers ]

Hi: Im a little irritated today. As if these hospitals don't hound me enough as it is for a payment, I come to find out that a $1,000 payment that I sent in back in October seemed to have gotten "lost". We sent a money order, we called the money order place and they said that it was cashed. ...

Can a creditor garnish a bank account if there is a payment agreement? [ 3 Answers ]

A while back I asked a question for my friend who is disabled on social assistance, and was being bothered by creditors. Well, since that time, she has made arrangements with the creditors and is paying them $25 a month towards her debt, which is all she can afford with her low income. The...

View more questions Search