I am wondering about specifics that happen if one is current on mortgage payments, does not 'reaffirm' mortgage in bankruptcy, yet WILL continue to make payments.
My mortgage payments includes tax and insurance escrow.
As I understand, from reading on this forum, the lender/bank would no longer send the usual monthly payment statements and vouchers even if payments continue to be submitted on time.
Is the lender obligated to continue to make the tax & insurance payments ( as outlined in original mortgage agreement), or should I assume that the escrow no longer exists and taxes and insurance need to be paid directly by me to the assessors office and the insurance company ?
Also.... IF escrow continues while I continue to make 'regular' payments would the lender have an obligation to contact me if the insurance or the taxes increased, and hence demanded a higher escrow payment ? How would I know which amount needs to be submitted if they no longer send out statements.... confusing....
and....last question:
could it be that tax and insurance escrow ( the amount paid in advance paid into escrow ) really belong to the BK trustee/ the estate, similar to a deposit make to the utility companies ?
Though I have little or no equity in the house, I definately plan on continuing to make payments in order to stay in it until I die or decide to sell.
I am trying to give consideration to all of these unknown different factors in order to avoid going into default with the lender after BK
Anybody had any experience on this topic, or any clue as to how this gets handled ?
THANKS FOR ANY INPUT !!!!
My mortgage payments includes tax and insurance escrow.
As I understand, from reading on this forum, the lender/bank would no longer send the usual monthly payment statements and vouchers even if payments continue to be submitted on time.
Is the lender obligated to continue to make the tax & insurance payments ( as outlined in original mortgage agreement), or should I assume that the escrow no longer exists and taxes and insurance need to be paid directly by me to the assessors office and the insurance company ?
Also.... IF escrow continues while I continue to make 'regular' payments would the lender have an obligation to contact me if the insurance or the taxes increased, and hence demanded a higher escrow payment ? How would I know which amount needs to be submitted if they no longer send out statements.... confusing....
and....last question:
could it be that tax and insurance escrow ( the amount paid in advance paid into escrow ) really belong to the BK trustee/ the estate, similar to a deposit make to the utility companies ?
Though I have little or no equity in the house, I definately plan on continuing to make payments in order to stay in it until I die or decide to sell.
I am trying to give consideration to all of these unknown different factors in order to avoid going into default with the lender after BK
Anybody had any experience on this topic, or any clue as to how this gets handled ?
THANKS FOR ANY INPUT !!!!