Denied Payoff And Exceeded Reasonable Atty Fees

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In the Summary of Final Judgment of Foreclosure, the court sets a limit for attorney fees. Can this amount be exceeded? A friend of mine has a property that is in foreclosure. The court allowed $2416 reasonable attorneys fees. She was required to sign a stipulation, stating she would make payments for 2 years, if payment was not made the Plaintiff would be entitled to receive a default and final judgment, and waive any further notice of the proceedings. In the stipulation, it has attorney fees of $4896. Isn’t that blatant disregard by the bank and their attorney for the reasonable attorney’s fees fixed by the court? I thought the reason it was fixed was so they couldn’t keep adding up fees until you couldn’t afford to get the property out of foreclosure. Also a payoff was requested for the mortgage for 30 calendar days. That request was denied; the reason given by the bank was that they don’t know the additional attorney fees that will be charged to release the foreclosure and the stipulation. Can a bank deny the person a payoff for their mortgage?

HELLLLP!

Tim

Comments(4)

  • Lufos28th August, 2003

    Dear Tim, File petition to the court for clarification of the fees, note in the pleadings the exact wordage of the claim.

    Enjoy, This is one of the reasons that here in LaLa Land oops California we utilize the Trust Deed for Non Judicial foreclosures. The fees are set by law and it takes a hell of a wiggle to change.

    Lucius

  • DerrickAli28th August, 2003

    ??? More Info Please!

    Was this a Foreclosure sale and is now in redemption? Or

    Was it a BK 13? Or

    Did the Lender agree to a workout repayment plan with the borrower?

    Sometimes there are addl. Atty fees when the borrower fiules and then refiles or opens a BK case.

    Depending on your State (FL) ,,,in MI for every Sheriff's Sale Date Leenders Atty MUST PAY An Appearance fee so if the Sale date is postponed the Atty.s Fees INCREASE.

    The Lender is in Violation of HUD's CRA (community Re-investment Act) laws if they fail to provide a Pay Off figure to the borrower (they can charge borrowers for preparing it) ---However they CANNOT DENY Granting Payoff Info to Borrowers.

    Pvt Msg me to get some insight on handling this ATTY and Lender.

    I hope this helps!

    Derrick Ali

  • bgn2fsh28th August, 2003

    The BK was a debt restructure plan. The Summary Final Judgement of Forc was filed in 2002 prior to the BK. and then we saved it from foreclosure at the begining of august 2003. The big problem is that they will not give a payoff, because they do not know what the additonal atty fees will be to release the foreclosure and the stipulation that was agreed upon, to make payments for 2 years or else waive any further notice of the proceedings. I need a payoff, I bought it Sub2 and they will not give the mortgage holder the payoff so I can refinance it.

  • jorge12131st August, 2003

    Bgn2fish:

    you are not a party to the suit and therefore can't file anything with the court for purposes of formally contesting the matter. i may have an informal solution for u though. if you have a contract to purchase the property then you will have a sufficent interest in the property to have say in the matter. determine who the judge is handling the foreclosure and speak to his judicial assistant and let her know that you are trying to purchase the property and that the plaintiff is seeking more in attorney's fees than the court has already adjudicated is "reasonable" in this case. that call will likely prompt her to contact plaintiff's counsel and get to the bottom of this. i've done this on several different occasions.

    J

    J

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