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CORPORATE ADVANCE

Sent to Legal Experts October 16 2006 at 6:28 AM
   

We are in the process of paying of a current loan and in this process our mortgage company is charging 7200.00 extra for what they call a corporate advance what is this and is it legal?

Customer (name blocked for privacy)
Status:  Closed   Value: $5.95
Answer
October 16 2006 at 6:30 AM (1 minute and 45 seconds later)
         
REPLIEDCheck Mark
Hello,

Where are you located?
Are you in default, or in redemption?

That will help apply the relevant law.

Cheers



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Flagbridge-ADR -- Arbitrator/Mediator -- 99% Positive Feedback on 1171 Legal Accepts
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Reply
October 16 2006 at 6:33 AM (2 minutes and 35 seconds later)
         
Reply to Flagbridge-ADR's Post: Yes, we are in a chapter 13 current with payments and we have recieved permission from the trustee to pay off.(By refinancing)
Customer (name blocked for privacy)
Answer
October 16 2006 at 6:43 AM (10 minutes and 29 seconds later)
         
ACCEPTEDCheck Mark
Hello,

Ok this makes sense. The Corporate Advance, is the fees the bank has incurred and will charge as part of the bankruptcy process. It is a service expense, not an escrow expense. the types of services this would include is the foreclosure expenses, attorney fees, insurance etc.

Basically it is all the Chapter 13 fees put under a different heading.

Feel free to ask them for a break down.

Yes it is legal for them to charge those fees, but you are entitled to some form of itemization.

I hope this helps. If it does, please click accept to close the question.


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