Lien on home 14 years post-BK

[blaze]

Please advise if there is a better subforum for us to post in.
We need an attorney but am unsure what kind. Our Ch 7 BK was discharged in 2008. We reaffirmed our mortgage and still live in the home. There was a business loan for our small business that was secured with the property that was discharged. The business has been dissolved for 14 years. We knew we’d likely have to pay the business loan eventually but haven’t thought much of it for the last 14 years until now trying to refinance the home. We cannot get the lender SunTrust (now Truist) to release the lien OR to send a statement showing what we owe. Haven’t received a bill or anything from them since prior to the BK. Someone on the phone finally said they see a $75,000 balance but can’t send a statement. The loan was only $50,000 at the time it was discharged and as I understood could not continue to charge Interest, since our obligation to pay was discharged. So basically we can’t pay the loan even if we want-since they won’t give a statement and it should not be allowable to have charged interest. So we cannot sell or refinance. Our current lendor says they cannot help. Our BK attorney says he can’t help. Both advised us to get an attorney it neither could recommend one.
What kind of lawyer do we need? Mortgage? Real Estate?something else?
Appreciate any advice. We always knew we’d owe the money and would pay it or negotiate a settlement, but can’t get anywhere on our own. Thanks sorry so long just stuck and a bit despairing and in need of legal help.

[justbroke]

blaze I will speak to the discharged promissory note. While it may have been discharged 14 years ago, the discharge only applies to your personal liability to pay. It does not actually cancel the terms of the note/loan. The terms continue until some operation of the contract or the law happens.

In other words, the interest continues to accumulate and any fees allowed by the contract are also allowed to accrue. The only way to extinguish the loan is through a foreclosure or by paying the creditor.

You'll need a current statement or letter from SunTrust showing what you owe. You will need to pay that or negotiate with them on a lower amount. If you have sufficient equity to cover what you owe, I don't think they'll be willing to settle on the amount since you can "afford" to pay them in full.

Since this issue deals with a property lien, you may need an attorney that specializes in real property matters. I would wait and continue to pressure SunTrust on a statement or something showing the balance along with the daily interest amount. Then you may think about how to get this paid off with the refinance or try to negotiate with SunTrust. You could try to consult with a real estate attorney to see what ideas they have.

[flashoflight]

Call the bankruptcy department at the lender and ask them to email, fax, or postal mail (don't do postal mail unless there is no other way) your old BK attorney the statement. Suntrust likely won't deal with you directly since the $50k loan is discharged. If you refinance and need the payoff, you will need to do the same thing again via the BK department (not the usual department for payoffs) for the payoff letter sent to your old BK attorney. Then you forward it to the loan officer doing your refinance. Payoff letters are very slow via the BK department so pick the longest date possible which is usually 2 to 3 weeks from date of request. You will get a refund from Suntrust if you overpay the payoff. It wouldn't be a bad idea to request a payoff letter today for a ballpark figure and do it again when you are pretty close to the closing date. This will give you a hint of how long it takes to get the letter to your old BK attorney and to get it to you.

Consensual liens can't be removed in a 7 or reopened 7. With appreciating home values, it's pretty unlikely Suntrust will settle for less than full payment. As rates are rapidly climbing, I'd try to get this done ASAP.