Dealing with a Mortgage that was not reaffirmed. Escrow??

[2b2rich]

I chose not to reaffirm my mortgage, but have questions about keeping records.

I do keep records, dates, etc of every penny sent to them, but almost $400 of my monthly payment goes to escrow and annually, the recalculate and either up the monthly escrow amount, or lower it depending on the fluctuation of my premiums, and refund me the difference.

I don't see them refunding me anything.  I will not lose my ability to log in and see how the payment is applied.

Is there anything in the Bankruptcy law that would prevent me from withdrawing from paying into escrow and just paying my insurance agent, myself?  My mortgage is a 30 year fixed and I have the schedule so I know how much the payment would be without escrow.

How does escrow usually work after a mortgage is discharged in BK?  (It is scheduled to discharge the first week in Jan)

edited to: 1) highlight the part that where my intentions were stated I would pay the insurance myself,  and never indicated it would not get paid, and 2) to note that I had emailed my attorney before making this post, I just wanted some others insight, also.  

[Anonymous]

I would perhaps consult your attorney on how this would be dealt with. Many of us can only assume. 

[FireMedic1]

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@Anonymous wrote:

I would perhaps consult your attorney on how this would be dealt with. Many of us can only assume. 

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+1 No clue on this one.

[despritfreya]

This is not a bankruptcy matter.

If the underlying contract requires impounding for taxes and insurance and you fail to do this you will be in breach of the those terms and the lender would be free to pursue its remedies.

If you no longer want impounding why don’t you just call the lender to see if you can remove that requirement? If you have always been current maybe the lender will agree. I did this years ago. I had to pay a small fee for the privilege but that fee was well worth it.

What you do not want to do is to take matters into your own hands. If you fail to pay what is required the lender will 1) put forced placed insurance on the property which is very expensive and only protects the lender, and 2) deem the account in default thus resulting in a potential foreclosure.

Des

[2b2rich]

My reference to it being a matter in bankruptcy, is that I am not sure what the lender’s responsibility to bankruptcy laws are.  I would hate to think that I was paying and all along it was all going toward he loan instead.  I know that there are certain things they can and can’t do with a discharged mortgage.  I can’t call them, I can’t call anyone, I’m hearing impaired so I rely on email. As for the insurance getting paid, please see my OP.

[despritfreya]

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@2b2rich wrote:

1. My reference to it being a matter in bankruptcy, is that I am not sure what the lender’s responsibility to bankruptcy laws are.  I would hate to think that I was paying and all along it was all going toward he loan instead. . .

2. I can’t call them, I can’t call anyone, I’m hearing impaired so I rely on email.

3. As for the insurance getting paid, please see my OP.

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1.  The lender will apply all payments as required by the contract - principal, interest, late fees if applicable and impounds.  The bk has no impact on that.

2.  You absolutely can pick up the phone to call and  talk using the free relay network system.   I think some lenders have a designated phone number when using the service. I have used the service numerous times to talk to clients and have never had a problem with it.  Maybe you have tried it, maybe you have not.  Maybe you had a bad experience and want nothing to do with it.  The point is that you can pick up a phone to call and talk to someone but, for whatever reason, you choose not to - and that is your prerogative

3.  I did not miss that you will pay for insurance on your own.   That is not the issue.  If your lender requires impounding and you do not comply with the requirement, forced placed insurance will happen.  You will then have to argue that you should not be charged for double insurance coverage.  Remember, while the lender cannot demand money, it still has its lien rights and if you ever sell or refi you will have to deal with all of the charges.

Des.

[2b2rich]

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@despritfreya wrote:

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@2b2rich wrote:

1. My reference to it being a matter in bankruptcy, is that I am not sure what the lender’s responsibility to bankruptcy laws are.  I would hate to think that I was paying and all along it was all going toward he loan instead. . .

2. I can’t call them, I can’t call anyone, I’m hearing impaired so I rely on email.

3. As for the insurance getting paid, please see my OP.

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1.  The lender will apply all payments as required by the contract - principal, interest, late fees if applicable and impounds.  The bk has no impact on that.

2.  You absolutely can pick up the phone to call and  talk using the free relay network system.   I think some lenders have a designated phone number when using the service. I have used the service numerous times to talk to clients and have never had a problem with it.  Maybe you have tried it, maybe you have not.  Maybe you had a bad experience and want nothing to do with it.  The point is that you can pick up a phone to call and talk to someone but, for whatever reason, you choose not to - and that is your prerogative

3.  I did not miss that you will pay for insurance on your own.   That is not the issue.  If your lender requires impounding and you do not comply with the requirement, forced placed insurance will happen.  You will then have to argue that you should not be charged for double insurance coverage.  Remember, while the lender cannot demand money, it still has its lien rights and if you ever sell or refi you will have to deal with all of the charges.

Des.

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I’m done.

[despritfreya]

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@2b2rich wrote:

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@despritfreya wrote:

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@2b2rich wrote:

2. I can’t call them, I can’t call anyone, I’m hearing impaired so I rely on email.

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2.  You absolutely can pick up the phone to call and  talk using the free relay network system.   I think some lenders have a designated phone number when using the service. I have used the service numerous times to talk to clients and have never had a problem with it.  Maybe you have tried it, maybe you have not.  Maybe you had a bad experience and want nothing to do with it.  The point is that you can pick up a phone to call and talk to someone but, for whatever reason, you choose not to - and that is your prerogative

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I’m done.

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You may be "done" but it is quite clear that you, being hearing impaired, are either unaware of or simply do not care about the free services that are available. You can be 100% deaf and still pick up a phone to talk to someone.  You choose not to.  You might want to check out this site:

http://www.abouttty.com/

"If you don't have a TTY, you can still call a person who is deaf, hard of hearing, or speech-impaired by using the Telecommunications Relay Service (TRS). With TRS, a special operator types whatever you say so that the person you are calling can read your words on his or her TTY display. He or she will type back a response, which the TRS operator will read aloud for you to hear over the phone. Toll free TRS services are available 24 hours a day, 365 days a year."

And, by the way, while I am not hearing impaired, my dad was.  He did not let that stop him.  He picked up the phone to talk to his children, friends, family, business associates, and, yes, lenders using this service, https://clearcaptions.com/ - so don't assume I do not understand.

Now I'm "done".

Des.

[Anonymous]

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[krielly]

As others have mentioned, this is not a bankruptcy issue, it is a contractural issue. Your payment agreement included the escrow. 

Are you concerned that your escrow account will not be handled the same as it was prior to the BK? Even if you have lost online access, you should still receive a year end statement from the bank which will show exactly how your escrow account was handled. Any overpayment should still be refunded to you. Adjustments should still be made if your payment needs to increase. 

I would expect you should receive a year end statement in early January.