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Got a Final Cure Payment Notice

San Diego, CA |

It states the trustee has paid an amount it says Monthly Ongoing Mortgage Payment
Below the letter it reads Mortgage is paid then with an x marked where is says direct by the debtor
What is this?

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Filed under: Chapter 13 bankruptcy
Attorney answers 3

Posted

It just means that your monthly mortgage payment is to be paid directly by you and that the Trustee will not be making that payment (although arrearages may well be in the Plan).

Susan Jane Salehi

Susan Jane Salehi

Posted

Post-petition mortgage payments are sometimes made as part of the plan payment if you have pre-petition delinquencies (Eastern District of California) and sometimes the post-petition mortgage payments are paid directly to the creditor such as in the Central and Southern Districts of California. The Notice of Final Cure Payments is sent after the last plan payment is made to creditors with a claim for pre-petition mortgage arrearages and it advises them that the arrearages have been paid in full and gives them an opportunity to agree or disagree. I believe this is done to avoid having Chapter 13 cases complete and then the debtor finds out that the mortgage creditor had added fees and charges without the debtor's knowledge during the Chapter 13. You should seek the advice of an experienced Chapter 13 attorney in your area to discuss this with you.

Posted

I concur with atty Whitaker. Your monthly mortgage payment is not being included in your Chapter 13 Plan payment. You are responsible to pay the monthly mortgage payment directly to the mortgage holder. If you have an attorney, it will be explained to you more fully. If you do not have an attorney, you're facing an uphill battle trying to successfully complete all the obligations associated with navigating this legal morass. All pre-confirmation mortgage payments must be verified as having been paid to the mortgage holder by using a special form approved in your district. Good luck.

Posted

Monthly Ongoing Mortgage Payment refers to your normal monthly payment as opposed to any amount necessary to cure the delinquent payments. As indicated by the other attorneys, this amount is to be paid directly to the lender. The payments need to be made in full and on time. This is a benefit to you and your other creditors because if you paid it through your plan to the trustee, the trustee fee would increase.

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