Foreclosure Attorney Fees after Discharge

[qwerty64]

I surrendered my house in a Chapter 7 filing (pro-se filing). The attorney representing the mortgage lender has filed papers with the county requesting that I pay their legal fees related to their time and effort in pursuing foreclosure.

Is this appropriate after a discharge has been issued and the asset surrendered?

If it is legit for a bank/attorney to request legal fees, can I argue that the attorney fees are inflated because the bank has been slow to act?

I tried to do the right thing and short-sell my house prior to filing BK. An all cash offer came in to buy the house. Granted, the offer was below market value, but it was only $800 below the outstanding loan balance.

The bank was too stupid to jump on an all cash offer (no mortgage qualifying) and minimize their loss. Because they didn't act quickly, the buyer eventually had to move on and buy another house as he needed a place to live. The deal fell apart.

That was 2 years ago now. After the short sale fell through I filed Chapter 7 and vacated the home.

I'm no attorney, but it seems to me the bank chose "of their own free will" to go the foreclosure route rather than accept the short sale. Perhaps they thought they could sell the house closer to market value? Seems greedy to me considering I was already 6 months behind in mortgage payments when the short sale offer came in.

In any case, the bank CHOSE to go the foreclosure route, which has now dragged on for 2 years, resulting in inflated attorney fees.

Can I fight this? Thanks for any tips.

[justbroke]

I don't believe they are personally pursuing "you" for the fees. The fees are added to the balance and come from the actual foreclosure. You have discharged your "personal" responsibility for the debt. If, after the foreclosure, the bank tries to actually try to bill you for or claim that you personally owe these fees and must pay them, that would be the point where it would be a violation.

What you are seeing is the typical foreclosure process. Nothing more.

[qwerty64]

Their filing is entitled "Affidavit in Support or Attorney Fees".

So this is the "normal" way that attorneys get compensated? They file a request for attorney fees with the court, which then get rolled into the foreclosure sale. Ultimately, the lender or the sheriff sale buyer pays these fees (not me). Pursuing me personally would be a violation of the discharge order. Am I now correct, in my understanding?

[daytona]

As just broke stated, it's pretty simple. If you included the mortgage in the CH7 and did not re-affirm then you have no responsibility for any fees. If the Attorney for the mortgage company actually takes you to court for legal fees, as you stated, it's a blatent DISCHARGE violation as they are in contempt of court! You have no worry's about any fees they try to charge. The mortgage holder is responsible for their counsel's legal fees...period. I'm not sure why the attorney would need to file that affidavit with the court for their client...unless their client won't pay them or the attorney has no idea what they are doing. I would just wait it out, if they do get a judgement for fees then the fun can begin. You could start with a strongley worded letter with a copy of your discharge paper (or simply case number)asking for monetary compensation...then watch them scramble. LOL. If they refuse to rectify the situation they are really playing right into your hand...next step would be to take them back to BK court and ask for same. You warned them, they refused to correct...so it gets into willful and egregious land which means larger sanctions on them.

[tobee43]

Their filing is entitled "Affidavit in Support or Attorney Fees".

So this is the "normal" way that attorneys get compensated? They file a request for attorney fees with the court, which then get rolled into the foreclosure sale. Ultimately, the lender or the sheriff sale buyer pays these fees (not me). Pursuing me personally would be a violation of the discharge order. Am I now correct, in my understanding?

just for good measure i would send a certified copy of your discharge and close orders to the atty and put the firm pursuing on notice. that way you have a record that you have informed them of the discharge and close of your bk and it's a nice way of letting them know they are in violation of those orders.