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Escrow "shortages" and mortgage attorney fees
Chapter 13 filed, and mortgage company files objection for heretofore
unknown prepetition arrearages based on an escrow shortage. No notice of a
shortage given prior to the bankruptcy, and almost half of these $2,000
arrearages are legal fees. Must these be paid by debtor in the plan?
What's more, I've seen this on two unrelated Chap 13 cases in the past week,
and in one of the two, the only escrow shortage IS exact amount of the legal
fees, perhaps related to bogus "shipping, handling and processing fees" of
the bankruptcy internally.
Maybe a new way for mortgage companies to generate money by hitting up the
escrow account? Debtor attorneys' fees are subject to judicial review via
fee apps; mortco attorney fees are just slapped onto the proof of claim,
throw a stick into our spokes, and only challenged if we bring it. Doesn't
seem quite fair.
Thoughts?
Hale
Chapter 13 filed,
and mortgage company files objection for heretofore unknown prepetition
arrearages based on an escrow shortage. No notice of a shortage given prior to
the bankruptcy, and almost half of these $2,000 arrearages are legal
fees. Must these be paid by debtor in the plan?
What's more, I've
seen this on two unrelated Chap 13 cases in the past week, and in one of the
two, the only escrow shortage IS exact amount of the legal fees, perhaps related
to bogus "shipping, handling and processing fees" of the bankruptcy
internally.
Maybe a new way for
mortgage companies to generate money by hitting up the escrow account? Debtor
attorneys' fees are subject to judicial review via fee apps; mortco attorney
fees are just slapped onto the proof of claim, throw a stick into our spokes,
and only challenged if we bring it. Doesn't seem quite fair.
Thoughts?
Hale
The post was migrated from Yahoo.