Greetings,
My wife and I are a little more than one year into our five-year Chapter 13 bankruptcy. Per our plan, our mortgage payment (including escrow for property tax and insurance) is paid by the trustee.
Last Friday we received a letter from our mortgage-holder saying they had performed an escrow analysis and were 1) reducing our future escrow payment and 2) including a refund check (approx. $490). We are also in the middle of a property tax adjustment effort, and expect our property taxes to be reduced once that analysis is complete. Naturally we will contact our lawyer regarding this notice from the mortgage company, but we've learned (the hard way) to have as many questions and expectations prepared as possible. So here are our questions:
If our lawyer says we are allowed to keep refunds from escrow overpayment, I'm tempted to skip trying to amend our plan, and be "happy" with a yearly escrow refund. However, we could really use the money now, not a year from now.
Any advice/warnings/stories from the forum? We'll post back when I get some lawyer feedback.
Will
My wife and I are a little more than one year into our five-year Chapter 13 bankruptcy. Per our plan, our mortgage payment (including escrow for property tax and insurance) is paid by the trustee.
Last Friday we received a letter from our mortgage-holder saying they had performed an escrow analysis and were 1) reducing our future escrow payment and 2) including a refund check (approx. $490). We are also in the middle of a property tax adjustment effort, and expect our property taxes to be reduced once that analysis is complete. Naturally we will contact our lawyer regarding this notice from the mortgage company, but we've learned (the hard way) to have as many questions and expectations prepared as possible. So here are our questions:
- Will we have to turn the refund over to the trustee?
- Since our monthly payment will be reduced, can we amend our plan to lower the monthly plan payment?
- When the new (lower) property tax amount is calculated, will we be able to reduce our plan payment?
If our lawyer says we are allowed to keep refunds from escrow overpayment, I'm tempted to skip trying to amend our plan, and be "happy" with a yearly escrow refund. However, we could really use the money now, not a year from now.
Any advice/warnings/stories from the forum? We'll post back when I get some lawyer feedback.
Will
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