The National Association of Consumer Bankruptcy Attorneys has recently listed several actions that, if taken by a bank or mortgage services, constitutes an abuse of the mortgage servicing rules when a debtor is in bankruptcy. Here are some of the actions that a bank should not take:
- Charging and advancing legal fees, property inspection fees, and broker price opinion fees incurred after the filing of a bankruptcy without disclosing the fees or filing an application with the court.
- Charging escrow fees in a proof of claim and also by a direct escrow review with enhanced direct monthly payments.
- Imposing late charges because the bank applies post-petition direct payments to pre-petition arrears.
- Charging property inspection fees every 32 days.
- Charging broker price opinion fees every 60 days.
- Purchasing forced-placed insurance on the property even though the debtor has insurance on the property.
- The failure to disclose the commissions received due to the forced-placed insurance.
- Failure to provide a debtor a credit or refund for forced-placed insurance.
If you believe you need assistance filing for bankruptcy or suing a mortgage company for a violation of servicing rules, feel free to contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.