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Does this sound right? I want to do an early payout but atty's office says...

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    Question Does this sound right? I want to do an early payout but atty's office says...

    Does anyone know if you can do an early payout in a chp 13 if you are at 100% but the property you have surrendered has not yet been foreclosed on or the process hasn't even begun? I spoke with the atty asst, and she said I can't request payoff until he property has been put in the mtg company's name (however she wasn't 100% sure). That call took place about 2 weeks ago and still no return call from my atty.

    I am going through a divorce and my husband has agreed to withdraw the money from his 401K to payoff. I can't beat that! But if we can't payoff early, then we are stuck (both of us) paying monthly. The property is in FL and the mtg company probably will take there time on foreclosing so they don't have to pay the assoc fee, hurricane ins, etc. I am still responsible for all that!!

    #2
    How many months are you into the plan?

    That is an interesting question...off the top of my head I know of no "specific" legal restriction on buying out a plan because your plan to surrender an item of property has not been completed. I can contemplate some arguments in favor of both positions, however.

    If I were you, I would send a LETTER to your attorney informing him of the divorce and the ability to pay off the 13 and ask your attorney to request a pay-out from the trustee (don't mention the surrender thing in the letter), and see what happens.

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      #3
      Thank you HHM. Your advice is always great. I will draft the letter up today and keep you posted.

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