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#2212639 - 05/02/19 12:37 AM Chapter 13 bankruptcy and escrow
terpsfan Offline
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Joined: Feb 2007
Posts: 2,058
If a borrower is current under the plan do we need to perform an escrow analysis?

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RESPA
#2213398 - 05/12/19 12:52 AM Re: Chapter 13 bankruptcy and escrow terpsfan
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I am not aware of any exemption for performing the escrow analysis. What RESPA does say is that when you have a past due borrower, you can't necessarily go after them for a deficient (below $0) amount, like RESPA spells out in §1024.17(f)(5). Instead, RESPA defers to your mortgage agreement, which should comply with your state's laws. Here's what RESPA technically says:

These provisions regarding deficiencies apply if the borrower is current at the time of the escrow account analysis. A borrower is current if the servicer receives the borrower's payments within 30 days of the payment due date. If the servicer does not receive the borrower's payment within 30 days of the payment due date, then the servicer may recover the deficiency pursuant to the terms of the mortgage loan documents. [§1024.17(f)(4)(iii)]
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David Dickinson
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#2213399 - 05/12/19 12:56 AM Re: Chapter 13 bankruptcy and escrow terpsfan
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I just went back and re-read your question and realized I may not have really answered your question. Again, yes, I think you need to perform the analysis. I know of no exemption from it. Whether you send the annual statement to them if up to your state law. Some states prohibit you from corresponding with borrowers under bankruptcy protection. That's why RESPA says to refer to your mortgage loan documents - which should comply with your state laws. That's what I was trying to say in the previous post.
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David Dickinson
http://www.bankerscompliance.com

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