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what happens when a second is charged off?

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mhafenstein Joined: 05 Jan 2010 Posts: 1 1.34 Dollars($)	Posted: Tue Jan 05, 2010 4:09 pm    Post subject: what happens when a second is charged off? Like 0 Dislike 0 We are six months late on our second mortgage. we are negotiating our first mortgage but the second didn't have much they were willing to offer. They said that at the end of January it will be charged off. What does this mean to us? We are in California and the property is underwater appx $200,000. We don't want to loose our home (which is why we are trying to negotiate). thanks for any advise.
smithsussane Joined: 18 Sep 2008 Posts: 10020 Location: Alaska 917.78 Dollars($)	Posted: Tue Jan 05, 2010 8:37 pm    Post subject: Like 0 Dislike 0 Hi mhafenstein! Welcome to forums! As you're not paying the second mortgage dues, the lender is sending the account to collections. The collection agency will contact you and collect the dues from you. If you are unable to pay the dues, the collection agency may in turn sue you it. To know more about second mortgage charge off, check out the given page: http://www.mortgagefit.com/know-how/secondloanchargeoff.html As the lender has still not charged off the account, I would suggest you to contact your lender and negotiate with him. Inform him about your financial situation and let his know that you're interested in paying him provided he gives you a payment plan. I hope they would agree to your request. Feel free to ask if you've further queries. Sussane
megan Guest	Posted: Tue Jan 05, 2010 9:37 pm    Post subject: Like 0 Dislike 0 It is my understanding that in California, they cannot sue us. Like i said, our home is over $200,000 underwater. We would most likely short sell if we can't negotiate for a significantly lower payment. I have heard from others that we should be relieve that is charging off, is there any truth to that?
jameshogg Joined: 20 Dec 2005 Posts: 10148 Location: Nevada 941.94 Dollars($)	Posted: Wed Jan 06, 2010 11:47 pm    Post subject: Like 0 Dislike 0 Hi megan, As far as I know, the second mortgage lender can charge off the loan though you are based in California. This is because, I suppose, the second mortgage is an home equity loan and not a part of the purchase money mortgage. If you do not want to get the second mortgage charged off, you should try to negotiate it with your lender as Sussane has suggested. Thanks

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