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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Hi. I am currently in the middle of a Chapter 13 to save my

Resolved Question:

Hi. I am currently in the middle of a Chapter 13 to save my house. I received an extension and have a few months until the first meeting. I made my first payment however.

I received a notice today that my mortgage company has transfered my loan from First Horizon to Nationstar Mortgage. This is effective August 15th, 2011.

How will this affect my filing?

Thank you very much.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
Will you be paying your mortgage directly, or will the mortgage be paid out of your monthly Chapter 13 payment?
Customer: replied 5 years ago.
Paying direct so far. Part of it goes out of my Chap 13 payment, though, as the house is worth about $ 400,000. less than I paid 8 years ago. So part is unsecured.

To narrow it down- both. :)
Expert:  cfortunato replied 5 years ago.
Is this mortgage a second mortgage?
Customer: replied 5 years ago.
No. It is the original first.
It is confusing though. It is First Horizon. Then MetLife. Then First Horizon. Current paperwork shows Bank of Mellon New York. The letter I received today says that First Horizon transfered my loan to Nationstar. But it is the first time my actual accoutn number has changed.
Expert:  cfortunato replied 5 years ago.
With what you are paying, and what the Bankruptcy court is paying, is the mortgage company getting the full amount of the monthly mortgage payment?
Customer: replied 5 years ago.
Yes and no. The problem was the property taxes they impounded. The county set my house value at 1.6 million. Four homes within a hundred feet of my all sold for under $ 800,000. and were larger. So while I was fighting it- First Horizon stepped in, paid it and added to my escrow. They also impouned the next years taxes. My payment then doubled.

So the amount due originally each month is easy to pay. It is the additional amount that is the problem. But they are getting an extra $ 1,000. a month to pay off the additional escrow amount.
Expert:  cfortunato replied 5 years ago.
In any event, the transfer to a new lender has to be reported to the Bankruptcy court, so that the payment they send will go to the correct lender.
The easiest way to report the change is to notify your Bankruptcy trustee, who may also want you to amend the Schedule(s) the mortgage lender is listed on.
Other than the above, the transfer from one mortgage company to another will not affect your Bankruptcy.

I think this is what you wanted to know. If not, please let me know.
Thank you!

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