QUESTION
Does anyone know any reasons why mortgage company would send a discharge of mortgage letter to me?
Asked on Aug 13th, 2016 on Bankruptcy - Wisconsin
More details to this question:
I just received a discharge of mortgage in the mail for one of my investment properties. I received this for no reason of my own. My wife and I are not in bankruptcy and are not planning to be.
4 ANSWERS
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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That means the lender has decided foreclosure will not be an option in attempting to collect the debt. As a result, it will likely file a Release of Mortgage with the county recorder and the mortgage will no longer encumber your property. That does not mean they are forgiving the debt. But if they do, you may receive a 1099C and you will have to declare as income the forgiven amount. However, the debt can be discharged in bankruptcy with no tax consequences.
Answered on Sep 09th, 2016 at 11:28 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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"Discharge of mortgage" has nothing to do with bankruptcy. It means that you've paid off the mortgage and you'll need to file the discharge with the local recorder to remove the mortgage from the official record.
Answered on Sep 08th, 2016 at 6:14 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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It's hard to tell. Why not telephone them and ask why they sent it? Any lawyer answering questions on this site would probably have to guess, in any event. Good Luck.
Answered on Sep 08th, 2016 at 12:09 PM
Could be a mistake, but also could be any number of other things. Why not go to the mortgage company and ask them?
Answered on Sep 08th, 2016 at 12:09 PM