@missy42 wrote:
I'm 26 payments into my 60 month payment plan. I pay my mortgage and mortgage arrears via trustee (through my monthly Plan payment). . . Normally Escrow for taxes and insurance is $2500 and up. This year my taxes was a whooping $220 and insurance pays each March at around $800 annually. I'm told the mortgage services will do an updated Escrow evaluation in December. Will the trustee be notified of lower payments?. . . [W]ill my (Plan) payments go down. . .?
Bankruptcy Rule 3002.1 states, in part. . .
(b) NOTICE OF PAYMENT CHANGES; OBJECTION. The holder of the claim shall file and serve on the debtor, debtor’s counsel, and the trustee a notice of any change in the payment amount, including any change that results from an interest rate or escrow account adjustment, no later than 21 days before a payment in the new amount is due.
Your lender will file or, already has filed a Notice of Mortgage Payment Change. Discuss this with your attorney as your conduit mortgage payment which is part of your Plan payment may be adjusted accordingly. If not, the excess amount paid will work its way to the general unsecured creditors or be returned to you once you have completed the Plan - this depends upon local procedure.
Des.
