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Second Loan is reported as charged off

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soopalami Joined: 23 May 2010 Posts: 1 1.35 Dollars($)	Posted: Sun May 23, 2010 6:24 pm    Post subject: Second Loan is reported as charged off Like 0 Dislike 0 We live in California and we have 2 loans both with the same lender (it was an 80% 20% loan) and we are currently going through a loan modification. After the first mod payment the loan company sent me a payment statement that showed the late payments will continue to accrue late charges and the loan seems to be back to the original loan agreement we had when we purchased our house and the loan company doesn't seem to want to help. We pulled a credit report and it shows the 2nd loan was charged off. What does that mean for us and if we decide to walk away can the loan company file a deficenty judgement against us for the second loan?
adonis Joined: 22 Oct 2005 Posts: 10562 Location: ALASKA 1089.18 Dollars($)	Posted: Sun May 23, 2010 9:52 pm    Post subject: Like 0 Dislike 0 Welcome soopalami, Your second mortgage has been charged off. A collection agency will come after you in order to recover the debt. After you walkaway from the lender, the lender will not be able to come after you for the second mortgage dues as he has charged off the loan. However, he will be able to come after you for the deficiency resulting from the first mortgage. _________________ Procrastination is the enemy of your financial success

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