[CLBS] Bank's application of APO payments not reducing mortgage - is this normal?

[Holly Roark]

My client is in a chapter 13 (CDCA). A motion to lift the stay was filed on
her mortgage and we entered into an adequate protection order. Debtor made
all the payments (about $6K). The bank shows the APO being paid off, but
does not show them crediting the payments to reduce the mortgage whereas the
regular monthly payments clearly show a reduction in the mortgage balance as
the payments are applied.

 

Is there some special rule about APO payments and application to the
mortgage balance? The bank keeps telling me these payments are somehow
"different" and so they are "credited" but not "applied." What? I believe my
client is being hustled out of $6K. She is obviously paying interest on the
higher balance which should be reduced by that $6K. 

 

Can someone explain what is going on here and do you have any suggestions? 

 

Best regards,

HOLLY ROARK

Attorney at Law 

Certified Bankruptcy Specialist -

By the State Bar of California Board of Legal Specialization

 

ROARK LAW OFFICES

950 Bannock Street | 11th Floor | Boise, Idaho 83702

Phone:  (208) 536-3638 (Texting is great! Regular business hours only,
please.)

Fax: (310) 553-2601

E-mail:   <mailto:holly at roarklawboise.com> holly at roarklawboise.com Website:
<http://www.roarklawboise.com/> www.roarklawboise.com

You can easily see my real-time availability and schedule time with me at
<https://calendly.com/hollyr> https://calendly.com/hollyr (Appointments are
by phone only unless otherwise noted.)

*This communication does not create an attorney-client relationship.

Unless you have signed a retainer agreement with Roark Law Offices, this 

communication may not be private or privileged.