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Tax Liens & Mortgage Notes

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Eric S.
  • Glen Ellyn, IL
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Chap 13 bankruptcy question-2nd mortgage note

Eric S.
  • Glen Ellyn, IL
Posted Sep 4 2017, 05:23

Fellow Note Investors,

I am reviewing the Chap 13 BK filing and plan in Pacer on a 2nd mortgage that is 100% secured.  The Chapter 13 plan calls for the arrearages to be repaid over 60 months, but does not include the original mortgage payment anywhere in the plan.  

Once the debtor reaffirms the debt, is it a given that the debtor will begin making the regular monthly payment as well as the payment towards arrearages during the term of the plan?

I want to make sure that since the original payment is not in the plan, that the plan does not create a "forbearance" in which the debtor only makes payments towards arrearages and the monthly payment is put on hold until the end of the plan.  

Thank you for your help!

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