1st Mortgage with Employer-- can they autodeduct post-discharge? Anyone know?

[Moneypenny]

Hi there,

I got discharged in 2010 and now considering walking on my discharged home loans. But... my 1st is with my employer, who cannot fire me because of tenure at a public university and also they probably cannot act too horribly since they are a public institution (and usually don't act horribly in all matters).

They take it out of my paycheck, and this was a condition of the loan originally.

Now the loan is discharged, and I would be happy to pay it monthly by personal check while I make up my mind, but want the option (also, of course of squatting till FC). Before I approach them about this I want to know where I stand legally. Of course I guess it is everyone's best guess, but maybe someone knows something or heard something?

Can my employer insist that I must submit to autodeductions on a loan that is discharged? On the face of it, of course everyone will say no, but they are the ones that give me the money. Is there some legal ground on which I can demand them to stop deducting the money? Can they say something like "move out first and surrender the title" (dont even know what that might mean, just sayin) or something. I think it will be obvious that I am intending to walk.

Anyone know anything, hear anything? (But please don't inform me that I am no longer liable for the loan as I know that already.)

[daytona]

They can't demand anything from you..the loan is discharged. Deauthorize the auto pay and if they object they are in violation of the discharge order. IMO they would have to go through the same process with you as they would anyone else... I/E forclose, etc...which would be "in-rem" (on the property) since they cannot foreclose on you...they will attach your name to suit as an interested party. You can then defend suit, etc,etc.

[Moneypenny]

I guess they are in violation if they refuse. Probably they won't refuse I guess-- but then I will be in breach of the original terms, since autodeduction was one of the original terms. This is fine if I walk, since I will be in breach the moment I stop paying them. But if I remove autodeduction and ultimately decide to keep paying, I guess I have breached the original terms and they can FC at any time if it proves attractive to them (such as they need the money desperately, while there a wild pick up in the market because they discover endless oil and diamonds under the ground and the U.S. economy is saved).

Do you think this is correct?

[daytona]

Technically I guess they could declare you in breach if you stopped the autopay...but they'd look pretty foolish in front of a judge trying to explain why they foreclosed on someone one was current on their mortgage...just paying in a different manner. :P Not gonna happen....