Can Mortgage Company Keep My Escrow Balance?

[spooby72]

We have been dischared from our chapter 7 and will be giving our house back to our bank. Can they keep our escrow balance? At what point in this process am I no longer liable for the homeowners insurance or property taxes?

[StaciMM]

For homeowners insurance, I would think that you are responsible while you're in the house. I know with a vehicle, I was supposed to keep it insurded as long as it was in my possession.

On the others, I'm not sure. I would think that if you didn't pay the taxes, the mortgage company would have to in order to sell the house.

[Minnymouth]

On the property taxes,
You only have to pay property taxes up to the day of surrender (or may even be the day you file), after that they are the responsibility of the mortgage company or trustee..... as you no longer own the residence.

If the Trust seizes the property, it is the Trustees responsibility to maintain insurance and property taxes until the property is sold.

If you have paid your yearly insurance, you can demand premiums be partially reimbursed the day you move out.........

Your money went into escrow to pay these - not their's...

Many people who file do not know this..... and the mortgage company and Trustee SURE WON'T tell you.....

Minny

[spooby72]

Minny...thanks..

I have already been discharged and still in the house....current on my mortgage. If I decide to stop paying my monthly payment, what will happen to the 3 thousand dollars in my escrow account?

[Minnymouth]

Did you reaffirm on your home and sign papers?? Or have you just kept paying the mortgage as usual??

Minny