What to do about my mortgage lender regarding unpaid insurance, taxes and an unreturned escrow for these items?

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What to do about my mortgage lender regarding unpaid insurance, taxes and an unreturned escrow for these items?

After filing bankruptcy last year my mortgage company decided to not pay my inurance. or taxes. Also, it has not returned the money they have collected for these expenses. Can I do anything?

Asked on March 28, 2012 under Bankruptcy Law, Alabama

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If your loan agreement calls for an impound account where your monthly payments are in addition to the mortgage (taxes and insurance) and you have always been current on your monthly payments for the full amount owed, I would contact the lender's representative to inquire why it has not paid the insurance and property taxes.

Typically, a lender to protect its security will pay property taxes and insurance first before it pays itself out of the monthly payment. Keep a copy of your letter sent for future use and reference.

If the explanantion that you receive does not meet your satisfaction from your lender, I suggest that you consult further with a real estate attorney about how the lender is not honoring its obligations to pay insurance and property taxes on the property you own.


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