Posted by sgh on October 25, 1998 at 07:00:02:
In Reply to: Mortgage Company applied payments strange posted by SGH on October 24, 1998 at 08:54:12:
P.S. The bank also accessed us with LATE CHARGES! for every payment since June 1993. Somehow I just know (or feel) that this is just not right. We followed our repayment plan to the letter and in good faith. How can they do this?
: We filed Chapter 13 in May 1993. We worked out a 60 month repayment plan for our only secured debt which was our mortgage. The mortgage company submitted a claim and accepted the plan. The claim included 7 past due payments. When the mortgage company started receiving the trustee payments they applied them first to all their expenses - lawyers fee, appraisal fees, etc, hence they only started applying the payments to the actual past due payments until the end of the repayment period. During this time they reported our account pastdue over 180 days to every credit bureau. In other word, as I was sending in our regular payments, they were applying them to the oldest past due payment which was a part of the bankruptcy claim. Is this right? Were they applying my payments (both from the trustee's' and my regular payments) correctly? Now our credit reports show that we have been over 180 days late since 1993! even though I made the regular payments on time. FYI - our mortgage company is located in Oklahoma.