Q: Does the deferred portion of a mortgage from prior mod have to be repaid as arrears in a Chapter 13 bankruptcy?
I am in the process of filing Ch. 13. Our Foreclosure judgement lists an amount appox. $31k for "streamline mods" as part of the total due back to the lender as part of the foreclosure. This is an amount of prinicipal that was deferred to either sale of home or maturity of loan as part of a previous modification. In the bankruptcy petition, the attorney has listed an arrears amount that includes this deferred amount in addition to arrears from past payments, fees, and legal costs, rather than just the arrears reported by the mortgage servicer. The arrears according to the servicer to bring the loan current are only about $23k. Which amount are we required to repay in the chapter 13 plan?
A: Depends on the terms of the loan modification.
A: You should be able to list this is a separate obligation or keep it separate from the amount you are reinstating under the plan. I have handled many of these and while they are fact specific, they usually do not need to be repaid as part of the arrearage. It can be listed with specificity under "Other Provisions" of the plan as an amount that is not due at this time and you are therefore not paying it. I am very specific in my language for this. Talk to your attorney.
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