Most home mortgage lenders who send monthly statements to their borrowers will stop sending statements once a bankruptcy is filed.  They will stop withdrawing automatic payments form your bank account. They claim sending the statements and withdrawing your funds might be seen as a violation of the bankruptcy automatic stay on collection and they don’t want to run afoul of the bankruptcy law.
Some Courts such as the Kansas bankruptcy courts have local rules allowing mortgage statements to be sent to debtors who want to retain their properties and continue paying the mortgage payments.
If you have filed bankruptcy and wish to keep your real estate that has been pledged as collateral for a loan, you must pay your mortgage payments. Not getting a statement does not get you off the hook – you don’t get a free house. YOU MUST PAY YOUR MORTGAGE PAYMENTS TO KEEP YOUR PROPERTY OUT OF FORECLOSURE. [Read more…]
