What to do about my mortgage lender regarding unpaid insurance, taxes and an unreturned escrow for these items?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
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 12 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.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.