Aurora Resets Mortgage On Surrendered Property
By Andy Miofsky, Illinois Bankruptcy Attorney on Jul 23, 2007 in General Bankruptcy Information
I am holding in my hand a June 2007 letter from Aurora Loan Services informing the chapter 13 trustee that based on an escrow analysis the mortgage payment is resetting to a different amount beginning August 2007. “This change is due to a routine annual escrow analysis that was completed on this account”, says the letter from the Bankruptcy Department of Aurora Loan Services. I regularly see letters like this, but not on cases where the trustee is not paying the mortgage, or where the debtors surrendered the real estate. In fact, in this case, the court confirmed a plan in December 2006 approving the surrender. Since that time, neither debtors nor trustee paid any money on this loan. Now, Aurora does an escrow analysis and determines a payment change is in order. Hmmm, did Aurora not notice that it has not received a payment in over 6 months? And just what has Aurora Loan Services serviced during this time? And how do they get paid if the money is not coming from our side? Situation normal, or so they say.
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