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2.10.5 Corporate Advances

“Corporate advance” is a catch-all category for servicing-related expenses (not escrow expenses) paid with servicer funds rather than escrow funds, to be recovered from borrower. Corporate advances may include foreclosure expenses, attorney fees, bankruptcy fees, force-placed insurance, and so forth. Borrowers should seek an itemization of corporate advance amounts so that a determination can be made as to whether each charge is appropriate.192


  • 192 {187} See Woltring v. Specialized Loan Servicing, L.L.C., 56 F. Supp. 3d 947 (E.D. Wis. 2014) (borrower stated intentional infliction of emotional distress claim when servicer allegedly overstated payoff amount multiple times by adding improper corporate advances and interest to the total due); In re Tolliver, 2012 WL 2952239 (Bankr. E.D. Ky. July 19, 2012) (finding corporate advance for “interest arrearage” nothing more than a farce); In re Wells, 463 B.R. 320 (Bankr. E.D. Pa. 2011) (disallowing claim for unexplained corporate advances); In re Sims, 358 B.R. 217 (Bankr. E.D. Pa. 2006) (disallowing $18,775 in corporate advances when evidence suggested that amount was duplicative of other costs).