Legal Question in Real Estate Law in Illinois

Mortgage escrow account statement lists a surplus balance in account after reassessment of our propety taxes resulted in a refund from the state being deposited in the escrow account. However, the mortgage was included in a Chapter 7 bankruptcy in 2008 and mortgage was not reaffirmed. Mortgage lender says regulations prevent refund of escrow surplus unless we reopen the Chapter 7 and reaffirm the mortgage first. I can find no information if this is a federal regulation (loan is issued by FHA). Is it a PNC round-around, strongarm tactic to get us to resume liability of the debt? Is this legal?


Asked on 3/05/14, 12:46 pm

1 Answer from Attorneys
Henry Repay Law Offices of Henry Repay

I believe their view is improper. An attorney can assist in using the proper means to request that they document the regulations on which they claim to rely.

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Answered on 3/05/14, 2:39 pm


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