I bought a note some years ago, borrower filed bankruptcy, note was paid according to the bankruptcy terms, borrower is now wanting me to reconvey, however, he has not reimbursed me for attorneys fees to defend the bankruptcy. Can I put attorneys fees (about $2k) + interest (about $1k) on the payoff demand? The note says borrower pays lenders attorneys fees but the issue was never brought up in the bankruptcy proceedings.
Really 2 issues here, one dealing with the debt and one dealing with the deed of trust.
The Ch 7 Order of Discharge likely quashed the note but NOT the mortgage/deed of trust and your lien is still legally on the RE and you have no legal obligation now to jump through hoops releasing it.
I’d advise you to hang tough on your reasonable (to me) demand to be reimbursed for atty fees and costs before releasing your lien.