What happens when 1st and 2nd charged off

connellyrobinson · Joined: 23 Mar 2008 Posts: 4 2.37 Dollars($)

I have 1st and 2nd mortgage with ownit mortgage. They filed bankruptcy. They are on my credit as charged off with the servicer. What can happen next? Does anyone know?

sara

Hi Connellyrobinson,

Welcome to the forums.

Since your debt is charged-off, it means that the lender will be reporting it as a loss. But you still owe the debt though the lender may or may not collect it because he thinks you may not be able to pay it off. Know more about charge-off .

Since your lender has filed bankruptcy, well I don't think they would ever collect it from you. But they can transfer the loan servicing rights to another company and the second company might collect from you. Hopefully you will be getting notices from Ownit mortgage as well as from the new servicer.

Take Care

connellyrobinson · Joined: 23 Mar 2008 Posts: 4 2.37 Dollars($)

Hi Sara,

Thanks for the reply. Can the servicer forclose? If so, don't they have to prove they own the note?

adonis

Connellyrobinson,

Samantha has a suggestion for you regarding this issue at http://www.mortgagefit.com/bankruptcy/lender-foreclose.html . Please have a look at it and let me know if there are more queries.

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