My Mortgage Has ALS: Aurora Loan Services
By Andy Miofsky, Illinois Bankruptcy Attorney on Sep 14, 2007 in Illinois
Six weeks ago I wrote about a letter I received from Aurora Loan Services informing the trustee of a mortgage reset due to an escrow analysis. There it was in black and white, “This change is due to a routine annual escrow analysis that was completed on this account.” The letter is dated June 2007. You will remember I wrote that these letters are common, but not in cases where the debtor surrendered the property months earlier. Yes, a confirmed plan from December 2006 provided that debtors would no longer make payments on the mortgage. At the time I wondered why ALS had not noticed that no one was paying the mortgage, and how ALS was getting paid for servicing a non-performing loan. And because Aurora was not receiving any payments from my client, I asked, just what has Aurora been servicing?
Guess what I have in my hand today?
Aurora sent me another letter dated August 22, 2007 that says, “Please be advised that effective November, 2007 the debtor’s loan payment will change to $580.63. This change is due to a routine annual escrow analysis that was completed on this account.” Same case, same confirmed plan surrendering same property, only this time debtor has finished all payments to the plan and the case is about to close.
Poor ALS. It really is sad when you forget that you just performed your last annual escrow analysis only two months earlier.
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