Lender charges after final foreclosure judgement

[Shirley A Nelson]

Property has gone through final judgement foreclosure 2/2020 being sold, before it goes to auction to a private buyer. Lender is saying they paid escrowed taxes a year ago 4/2019 that weren’t included in the final judgement 2/2020 so they have added to payoff. Also adding $6k attorney fees accrued since 2/2020 judgment. Legal??

[Chad U.]

Originally posted by @Shirley A Nelson:

Property status is after judgment, before auction. Property is under contract to sell-lender payoff is what I am questioning. Can the lender add advances to the payoff that the lender paid in 04/2109? Didn’t these advances have to be included in the 2/2020 final judgement? Also lender is adding $6k attorney fees to the payoff (less than 2 months after the judgement). 

 That depends, was the foreclosure auction set already then get postponed or cancelled by the borrower?  If so and it is heading for auction again, then yes, the Lender can add advances and fees to the final judgment figures. 

If it is a payoff for a sale, then yes the Lender can also add any advances and fees to the balance as per defined in the mortgage upon event of default.  Sometimes certain items are not allowed in a Judgement but can be allowed in a payoff or reinstatement. For instance, in Ohio legal fees are not permitted in a Judgment but are allowed in a reinstatement