Monday, February 17, 2014

This info should be shared!

Just thought I would share this tidbit of information.  Although every state does things differently, I am just covering something that is true in the state of Missouri in which I reside.

An acquaintance of mine had filed a chapter 13 bankruptcy around the same time that I filed my chapter 7.  The chapter 13 is a payback plan which you pay an amount every month over a period of time and after that time your bankruptcy becomes final.  Many people choose this route if the own real estate and have equity.  Chapter 13 protects your real estate, however, sometimes there are exceptions.  She was told at the time of filing that she needed to make sure that this payment was paid ON TIME every month because if it was late, the investors could take their house.

She was paying her house payment on the 15th of each month with a 5 day grace period.  All of the sudden, a year and a half later, her mortgage company decided that there would no longer be a grace period and that she could no longer pay online.  When she asked the bank why they had made these changes, she was told that it was due from her bankruptcy.  She had no idea why but she also knows that bankrupt people have a whole different set of rules than most others.  She is unable to pay the house payment right on the 15th because her social security check was changed from being issued on the 1st of the month to now the 19th of the month.  This is something she has no control over.

Here is the thing, since the bank that holds the mortgage to her house knows about the bankruptcy, they could, quite literally, file for foreclosure the very next day after the payment was due.  If that happens (and please never be naive enough to think it can't) she would have to pay the attorney fees and filing fees to get the house out of foreclosure which could add up to about $5000.  And let me tell you from experience...a bankrupt person does not have that kind of money!  My friend needs to do whatever she can to get that payment made on time!  I know, I know, easier said than done but this is the problem she must solve because there is much equity in their house.  It does seem that the banks move quicker to foreclose houses that have some equity.

Just as soon as you think that "they would never do that", you are sunk!  Take care, my friend!