A chapter 13 may require the debtor make a monthly mortgage payment directly to the mortgage company. What happens if I miss a mortgage payment?
The mortgage company is responsible to ensure the debtor is making timely mortgage payments. Generally, if one falls behind with the mortgage payment, the mortgage company will file papers with the court, requesting permission to proceed with the mortgage foreclosure action and sheriffs sale. Different mortgage companies may permit a larger default before they file the petition with the court. In other words, one mortgage company may wait 2 months to file the petition, while another mortgage company may wait until the debtor is 3 months in arrears. Generally, the mortgage company will permit the individual to resolve the matter by paying off the arrears with a lump sum payment and the balance paid over a reasonable time period.
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