ARAG Legal Insurance - Badge
Avvo Rating - Badge
Lawyers.com - Badge
Google Rating - Badge
Better Business Bureau - Badge

Why do Mortgage Companies File Claims with Deficiency Amounts Based on Escrow Shortage in Chapter 13 Cases

Liviakis Law Firm

Mortgage companies file claims with deficiency amounts based on escrow shortage in Chapter 13 cases due to a variety of reasons. A primary reason is that these companies are trying to recoup any losses they may have experienced from the debtor. The deficiency amount is based on the difference between the mortgage balance and the property’s fair market value.

During a Chapter 13 bankruptcy, a debtor has the chance to reorganize their debt and pay it off over a three to five year period. This plan includes any arrears on the mortgage.

The escrow account is typically used to pay property taxes and homeowner’s insurance. If there is an escrow shortage due to increased property taxes or insurance premiums, the mortgage company can file a claim for the deficiency amount. This is because the debtor is still responsible for these amounts, despite the bankruptcy filing.

However, the bankruptcy court must approve these claims and will often scrutinize them to ensure they are fair and accurate. It’s always in the best interest of a debtor to have a knowledgeable bankruptcy attorney review any claims made by a mortgage company. At Liviakis Law Firm, we have experience in dealing with such cases and can provide the necessary guidance.

Our Office

Former Office
1215 K St

Sacramento, CA 95814

Phone: 916 459 2364
New Office
2377 Gold Meadow Way
#100

Gold River, CA 95670

Phone: 916 459 2364

Client Reviews

Mr. Liviakis is extremely knowledgeable and answered all of the questions that we had about our situation. He made a really difficult time manageable with his help and expertise. I would definitely recommend...

Lindsey Joyner

Mik is a great attorney. Very friendly & professional. Price is was bit high compared to other firms. Probably the highest I've seen. If price your thing, checkout other firms. Other than that, Mik will get the...

Oi Vinn

Mik helped us save our home and settle with creditors during the pandemic after we were forced to close our family business for over a year. I am forever grateful. He was kind and professional and followed up...

Jina and Steven Hale

Mr. Liviakis was timely and professional. He patiently answered questions and explained the process. He provided handouts that clearly outlined due dates. The firm's paralegal was very easy to work with. I...

Wes Pohl

I nothing but great Experiences, and great service.

Tony Boone

Positive: Professionalism, Quality, Responsiveness, Value

Linda Todd

Contact Us

Fill out the contact form or call us at (916) 459-2364 to schedule your free consultation.
  • Language.png Free Consultation
  • Phone.png Phone Appointments Available
  • Gavel.png Talk to Award Winning Attorney Today

Leave Us a Message