An idea posted by Lyndon Willms:

 Something we may want BASIL to review are the local rules in light of the “Anticipated Escrow Shortage” language in the new POCs.  I need to dig a bit more, but it looks like the unintentional  consequence  of that type of shortage is to put more chapter 13 debtor in the position to pay their mortgages through the chapter 13 plan. 

If someone is current on their mortgage when they file the bankruptcy, they generally get a chance to avoid the fees of paying the mortgage through the trustee.  We are getting more “Anticipated Escrow Shortage” claims filed in 13s.  In the past, we would see a Notice of Mortgage Change based on real escrow shortages  would address any shortfall.  Now the mortgage and “Anticipated Escrow Shortage” going into things the trustee will pay, and the associated Trustee fees.

I just may be in a mood today because of the numbers of these anticipated Escrow Shortages I see coming in.  It is new form of Russian Roulette for clients. The committee notes review was not all that helpful.  It just seems like the new forms and current rules have created a disconnect; and clients are paying for it.

Just my random thoughts.

Sincerely,

Lyndon G. Willms