Is there an issue here? (Proof of Claim by secured)

[skweakalee]

There is a piece of property that I intend to surrender under my plan (it has a mortgage on it that I cannot pay off and don't want to pay off).

The property is worth around 65,000 (using an online property program that estimates worth), which is almost exactly what is due on the note.

I received a proof of claim that lists the amount of the balance due, along with fees that are allowed by the note. These fees bring the total of the amount due over the property's worth. The total claim is about 70,000. The proof of claim then says that "the value of the property is unknown."

On my schedules I listed this creditor as being fully secured because I thought the property was worth the balance due on the note. But it now appears the creditor is not fully secured due to these extra fees.

Did I mess up somewhere? Do I need to make changes? Is there is a bigger issue here that I am missing?

Thanks for any help.

[ColoradoBell]

I'm also in Colorado and interested in the question you pose.

Do you have an attorney or are you pro se? Are you worried that the creditor will come after you for the difference?

It seems that you might need to get an appraisal of your property IF that helps your cause, but I can't tell what your cause might be. If the property is only worth $50,000, then $20,000 of your debt would appear to be unsecured.

I have an investment property that is currently upside down. If I let it go, there will be some charges (cost of sale) I assume those charges are unsecured. So I might be in the same boat as you.

[HHM]

If you do not intend to keep the property, the issue is moot. In fact, if the creditor listed its entire claim as secured, and you are surrendering the property; the creditor screwed up, because their proof of claim will not allow them to participate in any distribution in your chapter 13

Basically, you do nothing. Let the creditor foreclose the property; if they try to file an amended proof of claim which would probably be done after the date for submitting POC's, then you object

Bottom line, no big deal from your perspective.