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Question on Mortgage/Mortgage Arrears Included in Chap 13

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Regular Contributor

Question on Mortgage/Mortgage Arrears Included in Chap 13

So I'm 26 payments into my 60 month payment plan.  I pay my mortgage and mortgage arrears via trustee.  Was rated Total & Permanent by the VA last year and this year it shaved quite a bit off my property taxes, (I'm in FL).  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?  I've been notified twice before when the Escrow increased so will they do the same now and will my payments go down or do it not matter because I'm stuck in this 13?  Yes it's hard and yes I pay alot $2872 per month with the payments going down to $2400 next year for the last 24 months.  Just wondering will the tax break even help?  Thanks in advance!

Filed Ch 13- 8/29/17
Message 1 of 6
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Super Contributor

Re: Question on Mortgage/Mortgage Arrears Included in Chap 13

Im sorry you havent had any responces. Wish i could help. But calling and asking your lawyer about this complicated situation would be best. i didnt want you to think everyone ignored you. Good Luck!

Message 2 of 6
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Regular Contributor

Re: Question on Mortgage/Mortgage Arrears Included in Chap 13

Thanks for responding guess I didn't realize it was complicated. I have spoken with my lawyer who said moving forward my payment (mortgage) will be lower but until the Escrow valuation is sent to Trustee not sure by how much; once my BK is complete it will have biggest impact!
Filed Ch 13- 8/29/17
Message 3 of 6
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Super Contributor

Re: Question on Mortgage/Mortgage Arrears Included in Chap 13

Least you have something in the works to go by. Really theres only 1 lawyer who pops in once in a while that I know of. Maybe they might have a better responce than any of us could give you. Good Luck!

Message 4 of 6
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Frequent Contributor

Re: Question on Mortgage/Mortgage Arrears Included in Chap 13


@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.

Message 5 of 6
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Regular Contributor

Re: Question on Mortgage/Mortgage Arrears Included in Chap 13

Thanks for responding Des I will keep watching via Pacer and via mail and contact my attorney. I've always been notified when theres an increase hoping for the same with decrease
Filed Ch 13- 8/29/17
Message 6 of 6
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