Legal Question in Real Estate Law in California

Hello

Our complaint is with our mortgage servicer, American Service Company part of Well's Fargo and our bankruptcy Trustee.

My in-laws and we share a lot with 2 homes. After my father in-law lost his job and 4k a month due to the turn down. ASC would not give us a fair loan mod. What they gave us was a fix rate at 6.75% from 7.25 and kept our 2nd at 12.3%. It was a $65.00 a month reduction. Then my wife lost her job for the same reason we missed 2 mortgage payments and the house taxes for 2008. In July 2009 my in-laws filed bankruptcy and part of their chapter 13 repayment plan cover the house taxes for 2008. We also drop the 2nd. We paid the house taxes in 2009 and the first half of 2010. Without a word ASC paid the taxes for 2008 to the county. Then in July 2010, ASC paid the house insurance after us. State Farm returned our payment. We filed BR chapter 13.Aug. 2010. Around the11th of Sept 2010 ASC informs us escrow is due in the amount of $336.00 with are mortgage payment starting Sept. 1 2010 .Are BR attorney said to pay our mortgage payment only. We ask the BR court to keep our mortgage out of our chapter 13 plan because we could not afford another $270.00 a month for the trustee to mail our mortgage. The trustee rejected our plan for a year because our mortgage was not included. He stated in court docments that a mortgages can be kept out of chapter 13 repayment plan but because we missed 32 months of escrow he felt we needed supervision. We were current with taxes and insurance up to Dec 2010 when the 2nd half of taxes was due. We could not understand how the trustee came up with 32 months of missed escrow since this statement was make in March 2011. This shows his lack of interest in our case he also stated that we should have to redo our financial sheets because we had 2 sets of house hold expenses for one address. The 2 houses on 1 lot were addressed. To get our chapter 13 plan confirmed in Oct 2011 by the court it had to include our mortgage payment and escrow, and 10% of the mortgage and escrow for the trustee, and 370.00 for rears. As of Oct 2011 we had 18 months with no late's and no missed mortgage payments.

We have all the paper to support what is said here.

Please read Ca states mortgage relief plan under Well's Fargo agreement pages 129 to 141 dealing with force placed insurance and then add in how they force taxes.

What could you do in this situation?

Should I confront ASC about our force escrow to work out a better loan mod.?

https://oag.ca.gov/nationalmortgagesettlement

National Settlement Documents

Wells Fargo Judgment, pdf

PG 92 EXHIBIT A

PG 106 BANKRUPTCY

PG129 VII. FORCE-PLACED INSURANCE


Asked on 7/25/12, 3:50 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Unfortunately, LawGuru attorneys can only respond to anonymous questions. We cannot answer questions that contain names of the person asking the question or of potential other parties in legal actions. I can say, however, that all mortgages require the borrower to keep the property covered with (at least) fire insurance and that if the insurance is canceled, the lender will purchase replacement insurance and send the borrower the bill.

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Answered on 7/25/12, 4:44 pm


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