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Question for the Money Doctors

Question submitted on Dec 17, 2013.

Question

I went through chapter 7, 4 years ago. My bank had since then sent me my escrow check every year. This year they sent it directly to the village tax people. We can pay three seperate tines by June. The bank told me that they had a service doing mortgages previous years. They did not even send me a notice indicating this change. I had always paid in the installment plan by the village. The bank said since I had filed chapter 7 they could do what they wanted. I had even signed a reaffirmation agreement and let them know at the time I was going through this, just to be up front with them. I told them it was my money they were using all year, but still said they could do what they wanted and I have no choice in the matter. Can they do this?

Answer

Many times after having credit issues, your mortgage company may require you to pay additional money into an escrow account to pay for certain items like property taxes and insurance.

If that is the case, the mortgage company is required by law to pay that money deposited into the escrow account to the village or city for the taxes.

Until you change the terms of the mortgage, I believe you must follow the arrangement until the house is paid off. Hope this helps.


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