Adding attorney fees to land payoff ???

[mayfieldga]

Jurisdiction

Texas

I recently had to file for chapter 11 Bankruptcy due to my loss of employment. I considered selling my home and property and asked my property lien holder for the "payoff" balance. She came up with this of the wall number witch included more interest and also attorney fees in the payoff. So my question is, is it legal for her to include attorney fees (which she claims can be charged to me for answering and sending me letters) to my original loan pay off? My contract of the original loan clearly states that an "early" payoff is NOT going to go against me in any way and that the finance charges still due before the early payoff will be deducted. Please help

 

[adjusterjack]

My contract of the original loan clearly states that an "early" payoff is NOT going to go against me in any way and that the finance charges still due before the early payoff will be deducted.

Well, that probably presumes that the loan never goes into default.

If a bankruptcy is an "event of default" then that provision no longer applies.

At any rate it is important for you to determine the change in the status of your home loan as a result of the bankruptcy.

1 - Discharged.
2 - Modified.
3 - Arrears

Etc.

If, as a result of your Ch 11, your loan had to be taken out of the normal process and referred to a legal department or collections department or whatever euphemism they use then, yes, you may have to pay attorney fees and other unpleasant charges to get your loan paid off and released.