Mortgage Escrow stuff?

[TheFalcon]

So, I got a petition in the mail from BoA, hey are doubling my escrow payments each month. The only past due amounts of the escrow were included in my BK13 case. Since then I have made all payments on time and the due amounts.

I have been in a 5 year plan, for 3 years thus far. The only changes that happened to my escrow were small tax increase and a change to my insurance policy (which was refunded back into the escrow). Mathematically speaking, the ONLY past due amounts in my escrow should be in the bankruptcy plan.

But now the bank is saying the past due escrow is now due on next years statements each month. My bankruptcy has not been discharged yet, and so far is going as expected.

Has anyone else had similar issues? Or have any comments, suggestions?

[justbroke]

Yes, this happened to me. I ended up converting to a Chapter 7 when my Chapter 13 payments went from about $5,500/month to just over $7,000/month! (That is not a typo.) The increase was that the bank, almost 2 years into my Chapter 13, decided to start an escrow account for my taxes. I didn't mind that so much, but they "doubled" the escrow payments for one year in order to fund the escrow account.

You do raise a good question. Is the bank attempting to recover the negative escrow balance by billing you double? If so, then they are violating the terms of the confirmed plan (if the negative escrow balance was provided for in the plan). You would need to work with your attorney to determine exactly what the bank is doing.

[TheFalcon]

Yes, Everything that was past due at time of bankruptcy including the escrow (taxes+insurance). Since then I have been paying as expected. the only increases to happen where minor increases in taxes and something small from insurance plan adjustment, but these changes account for a few dollars a month, not double my entire escrow payments.

From looking at my ledger, my payment cycles, and their analysis document, it looks like they are trying to get me to pay the late escrow (which IS in the BK) out of pocket into the normal monthly mortgage payment. This sounds like to me that they would be getting double. they would get what they are being repaid by the BK, and extra from their new petitioned payments.

[justbroke]

In this case, I would speak with my attorney and review my findings. They should not be attempting to collect anything (outside) that is already included in the Confirmed Plan!