Mortgage and chap 13

[Anonymous]

Hi all,

I am currently in a chapter 13 bk.  I have made all post petition payments to my mortgage company and to trustee.  Trustee sends out a report to myself and spouse twice yearly so we know he has been paying arreages.  Down to the problem mortgage company has not been reporting to credit bureaus payments made over the past 2 years or changing amount in arreages.  I have called and asked them to update status they say they are not oligated to do this until chapter 13 is discharged.  I feel asthough I am getting hit credit score wise doubley, already new 13 was going to hurt credit as you can not get credit while in it but the open credit you do have as a mortgage payment doesnt obviously go toward improving credit worthiness either.  Please advise what else I may do to fix this problem, attorney has requested payment history and all arreages but I will not know anything for another month and this situation is making me livid.

[Anonymous]

Hi ChrisB811,

I don't think that I have good news for you.  A BK13 is a protection from creditors to reorganize your debt and pay off obligations over a period of time.  Unfortunately, if mortgage arrearages are included as part of the BK13, then the mortgage company has the right to report the account as past due, even though you are making payments.  This is because, technically, the mortgage payments remain in arrearage.  Even though the mortgage payments are behind, they can not initiate foreclosure during a BK13.  Although you are making payments through the trustee, until the BK is completed, and the arrearages are paid, they can report as past due.  It sucks, I know.  Been there.  I agree, you are getting dinged twice, first for the BK and then for the mortgage lates.  Although I believe the information I have provided to be accurate, I may be incorrect and perhaps someone else will know how you could get around the reporting.  I never could until my BK was dismissed.  Good luck.

[Anonymous]

Thank you Dazed & Confused for your helpful information.  This mortgage company has just messed me over so bad that I am seeing only red.  I should've never had to file 13 in the first place.  It is do to their accounting errors and my being to trusting in the lender to see what was really going on while my husband and I were refinancing so we thought.