Do I have an Angel?? or is this the way it works

[fender45]

I received a letter from my mortgage company telling me that my loan has been paid in full. YEAH????

Some background: I live in Georgia, went to my creditors meeting on Oct 2, waiting for discharge around Dec 1, my house was collateral for a SBA loan and my business failed early August, filed Ch 7 in September.

My understanding of this process is that the mortgage company would foreclose on the house and it would be sold to pay off creditors.

Is this normal for the mortgage company to be paid in full? Who paid it?

Any insights??

[DeadManCrawling]

I believe you are misinterpreting this. Many people do the same.

What has happened, is:

Your obligation on the mortgage has been discharged. You no longer have to pay anything, IF you wish to leave the home and have the foreclosure continue.

The house IS still secured by the mortgage, though. It's just not your problem, if you decide to leave.

If you want to keep the place, you must continue making payments like usual. If you were already behind before you filed, the mortgage company will ask for a Lift Of Stay, probably, and proceed with the foreclosure.

So, while you ARE free of the mortgage, the bank still gets the home. Unless you keep paying or have made other arrangements with them.

But they cannot ever sue you for the money.