Chapter 13? Will It Effectively Lower My Principal On My Mortgage?
I filed chapter 13 2 and half years ago. My mortgage is on the program. I am to be on ch13 for 5 years,after which time i am to continue paying my mortgage on my on. At the time i filed ch13 the payoff on my mortgage was 30,000 ch 13 has now paid a little over 10,000 towarded the principal, and in five years time im figuring ch 13 will have paid roughly 24,000 towarded the principal, leaving me with a payoff around 5 to 6 thousand dollars. My question is: Am I thinking correctly or am i missing something
Answer:
Unless your mortgage is in its later years, most of your payments are likely going to interest (as well as late fees and costs). Out of the $10,000 you've paid, it's possible that only a thousand or two has gone to principal. Look at the mortgage company's proof of claim; it may indicate the breakdown of what you're paying.
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