Why would the mtg company file a secured claim?

[busbis]

I have a question...I looked up our case in Pacer and it shows a few of the creditors that have filed claims. Can anyone explain why the mortgage company in which I am surrendering the property filed a secured claim for the total loan balance plus any past due payments and late fees? Why would there be a secured claim if I am surrendering in the plan? Please HELP! My 341 for my chp 13 is on Jan 8. I just want to be prepared.

[CindyLou]

Well, as of this moment, it is a secured claim. It is a debt that is still secured by the property. That is my guess....I assume that will change after you actually surrender the property. The process is not finished.

I would make sure that on your documents your attorney has properly listed the property as as being surrendered.

[HHM]

Because liens survive the BK, thus it is a secured debt.

[busbis]

It does state in all my documents that the property is being surrendered. In fact, I am surrendering 2 properties. The other mortgage compnay whom I owe a credit card with did file an unsecured claim on the credit card only but nothing on the mortgage. I just emailed my attorney, but I'm sure I will not hear anything back this weekend and I just know I will not be able to sleep until I get clarification on this....its probably very simple and common, but I just don't know.

If there is a secured claim and you surrender the property, can the bk still be discharged before the actual foreclosure and sale of the property? We plan on doing an early payoff (taking out of a 401K, not alot of money) and hopefully paying off in 6 months, but now I'm afraid that this claim could have just halted that idea. Any feedback?

[busbis]

Because liens survive the BK, thus it is a secured debt.

ok I undestand liens survive, but if it is surrendered property and my bk gets discharged I am not responsible right. So what is the purpose of the filing of the secured claim...I'm sorry, I just don't get it.

[lrprn]

ok I undestand liens survive, but if it is surrendered property and my bk gets discharged I am not responsible right. So what is the purpose of the filing of the secured claim...I'm sorry, I just don't get it.

The lender is likely just covering their bases in case you don't surrender as expected. Filers have been known to change their minds about the surrender after filing but before discharge.

[HHM]

The nature of the loan is unaffected by your intentions (i.e. surrender, reaffirm etc). A loans status as secured or unsecured is determined at the time you take out the loan. Also, technically, the house is part of the BK estate...so the bank is merely informing the trustee (with its proof of claim) that they have a bona fide security interest in that property.

And no, you are not responsible for any debt related to the house if you are surredering the property.

[busbis]

Thanks HHM. I thought about your 1st post when I was laying in bed and it really started to make sense. I appreciate all your helpful advice in this forum. I do wonder why the other mortgage company hasn't filed a claim againist the other property. They have filed claims on other debt owed to them, just not the home yet. Maybe they are waiting for something...who knows. But again THANK YOU!