Second mortgage charge off - What does it mean?

Niicss · Posted: Thu May 15, 2008 12:39 am Post subject:

Welcome back sheila,

This is really annoying and ridiculous. After you sold the property haven't they recorded the deed in the deed in the county recorder's office? the mortgage should be on their name. So how can foreclosure shows on your credit report?

Contact the Credit reporting agencies and request them for correcting Errors.

Keep us posted.

0.10 Dollars($)

Wow that needs to be taken off of your credit report! The M9 will need to be taken off by a credit professional because it requires that your whole credit report be analyzed to determine what the best way to have it removed would be.

cliff · Posted: Thu May 15, 2008 8:13 am Post subject:

Sorry last two post where from me.

Guest 0.10 Dollars($)

I have a question. We are having trouble paying our seconde mortgage but not our first. In This depressed market our house isn't worth what we bought it for. Will the second mortgage forclose on our first even though the first is current? Also, the first and second are with the same company. Popular Mortgage Servicing Inc. Please Advise.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Siciliano,

Welcome to the forum.

Second mortgage is a secured loan. So, even the second mortgage lender can foreclose although your first mortgage is current. But as your the first and second mortgages are with the same company, you need to consult with the company and see whether they can offer you any solution.

BTW can you tell us about the type of mortgage that you have and the interest rate? If you are paying higher interest rate then you can refinance the present mortgage with a lower monthly payment.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Guest 0.10 Dollars($)

Thanks Larry

I have an 80/20 for 630,000. The first is 505,000 and the second is 125,000. Interest on the first is 7.38 and the second is 10. something. Is a 125,000 really going to foreclose on a 505,000? I tried to work something out but now since our credit has tanked because of late payments we can't. The representative on the phone said that the 2nd won't forclose on 505,000, probably just charge it off and issue us a 1099. If thats the case I'm fine with it, but want to expert advise and people familier with these issues. My home is probably worth 590,000. now with the housing prices going down. Now that you have all the info, what do you recommend?

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Siciliano,

Welcome back.

Probably as both the loans are from the same mortgage company that is why they are not foreclosing. If the second mortgage is charged off then it does not mean that the debt is forgiven. You still owe it and need to pay it. But if the mortgage company charges of the second mortgage then you need not to sell the property but try to pay the due debt. That will have a good effect on your credit report.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Guest 0.10 Dollars($)

Larry,

If they charge it off, can I just do a bankruptcy and put it in with that?
I just cannot afford the second mortgage. Our primary business was real estate and as you know it's taken a nose dive. I thought there was legislation where they were going to buy high interest rate loans and refinance? any word on that? I would like this company to do an "in-house" refinance and put it all together at a lower interest rate. You would think they would want to, but in the absense of that I figure i'll pay the first, and try to work something out later with them? I did get a notice of default but it wasn't from my mortgage company, it was some other company. please advise.

Niicss · Posted: Sat May 24, 2008 4:07 am Post subject:

Welcome Back Siciliano.

You need not to file bankruptcy. I feel refinance is a good option for you. Talk with the mortgage company and request for refinance. If you can refinance both the loans into one that will be good for you.

If your mortgage company can not help you out with refinancing then you can shop for lenders for refinancing.

Let me know if you have any further questions.

Guest 0.10 Dollars($)

hi, can a mortgage charge off turn into a foreclosure?

Guest 0.10 Dollars($)

will a charge off mortgage put a lien on the property or will it only show up in the borrowers credit report? thank you.

Caron

Hi Jenny,

Welcome to our forums.

As far as I understand, a charge-off cannot turn into a foreclosure. I mean the lender has issued a charge-off because he thinks he won't go after your debt anymore though you actually owe it. Charge-off implies your debt is considered as uncollectible. So be rest assured, as the lender won't foreclose.

The charge-off will show up in your credit report for 7 years. However, if you pay off the charged-off debt within a few months/years, you can negotiate with the lender to update the charge-off status on the credit report as "paid charge-off" or "settled charge-off". An even better option would be "pay for delete" but that's only possible if you quickly pay off the debt.

Good luck

Guest 0.10 Dollars($)

I am not able to pay my second loan due to my husband's recent illness. We are considering filing bankruptcy. My question is will we be responsible for the 2nd loan if we continue to pay for the 1st loan and stay in the home?

smithsussane · Posted: Tue Sep 30, 2008 10:55 pm Post subject:

Hi guest!

Welcome to the forums!

If you file a bankruptcy, then both the loans will be included in it. Then you will not be able to live in that house. However, if you keep on paying the first loan, still you will be responsible for your second loan as well. You will have the option of short sale and deed-in-lieu provided if the lender accepts.

Feel free to ask if you have further queries.

Sussane

Guest 0.10 Dollars($)

If I have a charge off on my credit report due to a foreclosure, can I be
forced to pay from via my direct deposit bank account

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