surrender of condo

What is the name of your state? Maryland
I filed chpt 13 2 yrs ago and recently married and moved to another part of the state. I need to sell my condo, and was advised to get permission to sell. However, when I got the payoff figures for the mtg servicer, they added about $10,000 in fees and interest, which means I would have to pay $3000 to get rid of the place. My realtor says that Litton Loan Svc is another Fairbanks! Anyone have same experience with them. Anyway wondering what to do, I don't have 3 grand!

[Elmo-1]

This would be considered debt incurred post-petition and you'd be 100% responsible to repay if you go through with it. It may be better to lease or rent the condo until you have enough equity to pay those fees. The fees should be a % of the principle and will go down with the principle. With only $3k to make up and solid tennants you could probably sell within a year and cover the deficiency.

[bigun]

There is a consumer law firm in Chicago gathering information against a number of collection agencies and mortgage compamies. [url]www.edcombs.com[/url] and click on "special". Scroll to near the bottom to get to mortgage companies and Litton is one they've an interest. You might contact them and see if you've any recourse. I do know they work on a contingency. Address the inquiry to Daniel Edleman.

Thank you for your replies. idid go to the site you suggested BIgun, and will be contacting Mr Edelman.in the meantimeI went back to the lawyer that orginally handled my chpt13, and he said I can do a voluntary surrender, and that this process is just like deed in lieu of foreclosure, and that I will not be resonsible for the balance of the mtg. Has anyone out there heard of this or have expeririece with this, get back to me asap, as I have to make a decision this week. Thanks again!

[Elmo-1]

A deed-in-lieu of foreclosure is where you voluntarily "give back" your property to the lender.

You qualify if:
1)you are in default and don't qualify for any of the other options (Bk);
2)your attempts at selling the house before foreclosure were unsuccessful; and
3)you don't have another FHA mortgage in default.