In re Garcia
Opinion
Lead Opinion
Sargis, J.
This Objection to Notice of Mortgage Payment Change was presented to the court as one in which the Creditor, Deutsche Bank National Trust Company, as Trustee for the GSAMP Trust 2004-WMCI ("Creditor" or "Deutsche Bank") had increased the monthly escrow payment for taxes and insurance from $ 362.04 to $ 515.12, a 42% increase of $ 153.08. Over a period of the first twelve months Deutsche Bank would receive an additional $ 1,836.96 over what is computed to be the actual insurance and property taxes to be funded from the escrow payments by Debtor during that period.
As addressed below, the $ 153.08 increase sought is not for post-petition escrow amounts, but to recoup pre-petition defaults, and accelerate the recoupment to just twelve months, rather than allowing the Debtor to use the full term of the plan (up to sixty months) to cure the pre-petition defaults.
The Objection is sustained and the increase in the monthly escrow payment is disallowed in its entirety. The court does allow an increase of $ 1.17 a month for the escrow payment based upon the evidence provided of the post-petition property tax and insurance amounts.