In Part 1, we discussed how mortgage companies often engage in â€œdouble dippingâ€ when you are in a Chapter 13. Part 2 dealt with how mortgage companies commonly fail to send you a monthly statement while you are in a Chapter 13 bankruptcy. Part 3 addresses the ways in which mortgage companies often misapply monthly mortgage payments.
In many cases, during your Chapter 13 your monthly mortgage payments increase (or decrease) for any number of reasons - because of a variable interest rate, an increase in property taxes, etc. If the mortgage company isnâ€™t sending you a monthly mortgage statement (see Part 2), you may not have been aware of the change. In that situation, the monthly payment you are sending may not be enough to cover any increase.