Why is the mortgage company not sending me statements during my bankruptcy
If you have a mortgage and filed for bankruptcy in Santa Ana and in most other districts in California, your mortgage company might stop sending you statements. This is not illegal on the mortgage companies part. When a bankruptcy is filed in Santa Ana or other parts of the nation, a “stay” is placed automatically on creditors. This automatic stay your creditors must stop most collection actions against the you or your property. This is pursuant to Title 11 of the Unite States Code Section 362.
Your mortgage company is considered a creditor. Because of the automatic stay, they also must stop collections actions. This means they must stop soliciting you for payments on the mortgage. However, you can continue making payments on the mortgage. During the bankruptcy you will have a few options.
Options for mortgages during bankruptcy
Reaffirm your mortgage debt
First you have the option to reaffirm the debt. In Santa Ana and other parts of California, attorneys do not recommend signing the reaffirmation agreement in most cases. To learn more about reaffirming mortgages, you can read about it here.
Continue making payments without reaffirming your mortgage debt
Second, in most cases, you can continue making payments to your mortgage company. In some cases, they might start sending you statements if you request it and your bankruptcy attorney signs off on it. To learn more about your options, you can read about it here.
Options for mortgages after bankruptcy
After your bankruptcy is complete, you will have almost all available options with your mortgage as you had prior to filing. This includes, Sale, Rent, Refinance and Modify etc. If the mortgage company tells you otherwise, try speaking to mortgage personnel at a higher level. I number of mortgage companies that tell you they cannot refinance a loan or offer a loan modification because you did not reaffirm your debt is not providing the full details. Speak to a bankruptcy attorney for more information.