Early payoff questions

[Pandora]

It makes more sense now. Assuming you are devoting all of your DMI to the plan, the unsecureds will no longer get 100%. If you weren't paying all of your DMI because you didn't need to in order to pay 100%, your payment may need to be increased. That's my understanding of how it would work anyway. An initial plan anticipates a certain percentange to unsecured creditors, but that can change depending on what claims are filed and if the stripped mortgage wasn't taken into account when drafting the plan. I think your plan should have included the fact that the mortgage was being stripped. I don't remember, was your plan already confirmed?

Yep - confirmed over a month ago. All DMI is being devoted down to the pennies and is exactly enough to fund our base plan. 2nd was and is taken into account and noted as such (what I posted yesterday was directly from my judges confirmation order). *sighs*

I dont know any more how our plan works out, my head hurts from trying to figure it out. All I know is that I have 4 unsecured claims; prop. taxes (priority), 2 dr bills and our 2nd mortgage which we stripped. Sole reason for filing was to strip the 2nd. I just cannot see the trustee splitting the remaining 30K (after trustee and lawyer are paid in full) equally between 4 creditors, paying roughly $8K on a $900 property tax bill or the same for the 2K dr bills when I don't owe that much to either of them.

According to our lawyer and the trustee - our plan will not increase above the 36K it's at, trustee isnt requiring any pay raises, tax returns, etc and we've been told we have the option to pay off early if we want to, but its not required. Base plan of 36K is solely non-exempt assets valuations we chose to keep vs. liquidate. ETA: hubby got a new job, making more $, and trustee notified...he did not want any additional $.

I think I need a drink...

[jennerik]

Update...I just checked 13datacenter and it matches Pacer. Both show the 2nd as unsecured, not claimed. Does this mean that if all the other debt is paid, I can discharge early or will this start once the other debt is paid?

Anyone?

[justbroke]

Update...I just checked 13datacenter and it matches Pacer. Both show the 2nd as unsecured, not claimed. Does this mean that if all the other debt is paid, I can discharge early or will this start once the other debt is paid?

You can't get an "early" discharge. Additionally, I even had an account in my 13DataCenter that was my 2nd mortgage, it showed 0% and unsecured, but they did in fact disburse funds to them almost every month. Never trust 13datacenter is my rule.

[LadyInTheRed]

You can't get an "early" discharge. Additionally, I even had an account in my 13DataCenter that was my 2nd mortgage, it showed 0% and unsecured, but they did in fact disburse funds to them almost every month. Never trust 13datacenter is my rule.

Yeah. 13datacenter says I am paying 100% to unsecured. That couldn't be further from the truth!

[enginegirl]

You are one great attorney! I wish more were like you. (And, the poster is from California which is a non-recourse State. Unfortunately, my state (Florida) isn't.)

Hey Justbroke... Just a heads up...Florida is a non- recourse state! http://www.forecloseddreams.com/recourse_states

[justbroke]

Florida is not a non-recourse State.

Florida is a recourse (deficiency) State when it comes to judicial foreclosures. Almost all states that have non-judicial foreclosures are non-deficiency. However, the majority of Florida foreclosures are against Mortgages, are judicial foreclosures, and the lender has the right to "sue" for deficiency after the foreclosure. Florida does, apparently, allow non-judicial foreclosures on Deeds of Trust (different than a mortgage). A Deed of Trust usually contains a Power of Sale clause so the "foreclosure" process is much different. I have never seen an actual "Deed of Trust" with power of sale, as the security instrument for some promissory note... in Florida, but they do exist, apparently.

I usually think like this...

• if your security instrument reads "Mortgage", then your State probably allows only a judicial foreclosure and probably allows deficiency lawsuits.
• if your security instrument reads "Deed of Trust" or "Trust Deed", then your State probably allows a non-judicial foreclosure utilizing a Power of Sale exercised by a Trustee, and probably does not allow deficiency lawsuits.

[enginegirl]

now I am even more confussed!!
JB I found this regarding non recourse vs recourse States
The following is a list of non-recourse and recourse states. Recourse basically means that the lender can come after you (has recourse against you) if your house sold at auction or through a short sale for less than the amount owed the lender. If you borrowed $350,000 to buy your home and it sold at auction for $200,000 there is a deficiency of $150,000. That lender can have recourse against you for that amount depending on your state.

In many states, non-purchase money second mortgages (such as HELOCS) are recourse loans. So, the loan you took out to purchase your house could be non-recourse, but that equity line of credit you used to buy a boat won't be.

Remember that you may be liable for taxes on the deficiency regardless of whether the loan is recourse or non-recourse. Each state has its own variation on the application of its recourse and deficiency statutes. You need to look to your state's statutes and speak to a local attorney for an interpretation.
and it clearly shows FL as being a NON RECOURSE STATE!
Maybe I'm just exhausted from the whole BK... and have forgotten how to read?!?

[justbroke]

Well, enginegirl, let me be the first to tell you this... don't believe everything you read on the internet. Having wrote that, please believe me that Florida is a deficiency state.

That's why I often show facts and caselaw, or actual State Statutes, to back up what I write...

Florida F.S. 702.10 Order to show cause; entry of final judgment of foreclosure; payment during foreclosure.--
.
.
(the hanging paragraph after paragraph 7)

Any final judgment of foreclosure entered under this subsection is for in rem relief only. Nothing in this subsection shall preclude the entry of a deficiency judgment where otherwise allowed by law.

[enginegirl]

Thanks JB
have a great night! off to bed..been a long day!

[forgotten]

You can't get an "early" discharge. Additionally, I even had an account in my 13DataCenter that was my 2nd mortgage, it showed 0% and unsecured, but they did in fact disburse funds to them almost every month. Never trust 13datacenter is my rule.

I'm lucky, my trustee seems very picky about making sure 13datacenter is up to date. Everything is and always has been spot on and updated quickly.
I know all the payments to creditors are listed because she always runs my balance down to like $30 about a week after I make a payment.

[justbroke]

Well, as far as payments go, it is accurate because that's the system which the Trustee uses to issue checks to creditors. However, the "percentages", number of creditors, and other items are usually not accurate based on the Confirmed Plan. When it came to issuing checks and $$$ and balance, mine was always 100% accurate. Everything else was mostly wrong.