Early Payoff But..

[ChescoChris]

I have 7 payments left on 100% plan and enough cash on hand to pay in full. However, my lawyer keeps cautioning that there is some risk that the mortgage holders on a surrendered property could dispute an early payoff now that the property is finally resold and a claim could be calculated and submitted. I'm confused because the confirmation clearly stated "surrendered in full satisfaction with $0 distribution to..." He claims there is always risk when working with the trustee. I am so tired of it and want to move on. He has not been a stellar lawyer, overly cautious but not incompetent.

Any thoughts? If I just make a few extra payments, will it be over more quickly?

[LadyInTheRed]

Take your attorney's advice. The language re zero distribution is based on the fact that the creditor did not file an unsecured claim. Your attorney is concerned that the mortgage company could petition the court to allow a late unsecured claim for the deficiency. If they get the notice that your case is ready to be discharged, they may wake up and file a claim. Better conservative than sorry.

[justbroke]

Listen to your attorney. While that particular secured creditor may not win an objection to discharge or some sort of motion to allow a late amended or unsecured claim, it could certainly make things more tentative and tense. Why add additional angst (which I sense you are feeling)? Your attorney probably told you that it should not be an issue, but there are some very small risks. Patience may be the better option.

Additionally, why would you deplete your savings which would take you another 7 months to rebuild to that level? Slow and steady wins the race.

[ChescoChris]

Ha.. That's actually exactly what he said Justbroke. My frustration was that dealing with the house and an ex 4 years prior to the start of my chapter 13. The angst comes from what is essentially a 9-year plan. It has been a long ride. Thanks for the response!

[justbroke]

You're welcome. I know it's a long road and you can start to see that light ahead in the tunnel. I just posted a thread on the number of Chapter 13 cases, filed pro se, that never make it to discharge. The pressures are enormous but you can do it. Don't snatch defeat from the jaws of victory!