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jennifer franklin
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Post subject: home issues |
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| what happens if you have a charge off on your second mort. does that mean u can keep your house and just pay the first? |
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Grace
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Post subject: 2nd mortgage charge off |
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| My bank called and asked if we want to re-mod the first (they Carry both liens), house in foreclosure right now, recording a lien to the house is their way of getting paid for both? and if they charge it off, are we getting a 1099? |
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adonis
Joined: 22 Oct 2005
Posts: 3777
Location: ALASKA
109.26 Dollars($)
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Post subject: |
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Hi,
To Jennifer,
Second mortgage charge off does not mean that your lender has forgiven the second mortgage debts. It only means that your mortgage has been sold off to a collection agency who will in turn collect the dues from you.
To Grace,
If both the loans are with the same lender, then I guess, he is giving you an option for loan modification. In this process, you will get a new repayment plan in order to pay off the dues. Charge off does not mean your loan is forgiven. You will have to pay the mortgage dues to a collection agency to whom the lender has sold off your mortgage. As your loan is not forgiven, the question of 1099 form does not arise. |
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Grace
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Post subject: lien after charge off |
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Hi Adonis
Thank you for answering my question.
Now, please clarify this, if a mortgage loan is charge off, my understanding is, it becomes a debt (that I need to pay) but no longer a mortgage, how can it be lien to your property, my understanding is only mortgage loans and taxes can lien your assets. Please reply |
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Niicss
Joined: 03 Oct 2005
Posts: 2579
Location: New Jersey
402.93 Dollars($)
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Post subject: |
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Hi Grace
It's correct that once the mortgage is charged off, it becomes the debt which needs to be paid off. I don't think it will be a lien on the property, however, a mortgage charge off will definitely affect your credit score.
Thanks. |
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Smee
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Post subject: 2nd Mortgage sent to collection |
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| 2nd Mortgage has been charged off & sent to Collection. Is the debt considered a mortgage or simply a debt and can it be included in bankruptcy Chapter 7? |
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adonis
Joined: 22 Oct 2005
Posts: 3777
Location: ALASKA
109.26 Dollars($)
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Post subject: |
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Welcome Smee,
When the mortgage is charged off and sent to a collection agency, it will be considered as an unsecured debt. As far as I know, it will be included in Chapter 7 bankruptcy.
_________________
Procrastination is the enemy of your financial sucess |
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cocosisimo
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Post subject: Charged-off |
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I have a 80-20 with the same bank, but as different types of loans, the 80 as a conventional mortgage and the 20 as an equity loan.
I recently noticed in my credit report that my 20 has been charged-off.
Under my strenuous financial situation I was planning in doing a deed-in-lieu of foreclosure and getting rid of the condo which as ruined me emotionally. I already tried a short-sale but the bank took so long to approve (2 months) that the buyer walked away.
Well, my question is: If I surrender the property to the bank, what happens to the charge-off. Could this be renegotiated? or am I stock with a collection agency forever?
By the way, I am currently in the foreclosure process.
Thanks |
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adonis
Joined: 22 Oct 2005
Posts: 3777
Location: ALASKA
109.26 Dollars($)
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Post subject: |
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As your property is already in foreclosure, I doubt whether you would be able to renegotiate your second loan which has been charged off. However, I would suggest you to speak to the second lender and check out your options.
_________________
Procrastination is the enemy of your financial sucess |
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Robbie
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Post subject: Bk question on morgage |
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To the question pertaining to the bk. The bk judge can now look at your
loan and reavaluate it. This just past the house. The banks hate it but it may help you. |
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madeleine
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Post subject: short sale |
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| I owe 64,000 on my loan and my home probably would be sold for $45,000. I know I would have to owe about 15,000 to the bank. Would this be considered a short sale? I lost my job because of this economy. They shut down one of the starbucks where I was for 5 years full time. My fiance is paying all the bills. Because of this would the banks help me out? |
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madeleine
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Post subject: short sale |
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| Correction on what I said with my loan of 64,000. I would have to give the bank $20,000. If I sold my home for about 45,000. Is this a short sale and would they take consideration of my situation with the loss of my job. The trailer is on my name only. Although my fiance is paying the bills now. |
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Madeleine
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Post subject: credit for apartments |
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| If for any reason I did have a short sale and this was on my record until it was paid off. How does this work if I were to apply for an apartment in Florida with that background? Would they reject me ? |
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smithsussane
Joined: 18 Sep 2008
Posts: 3627
Location: Alaska
541.91 Dollars($)
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Post subject: |
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Hi Madeleine!
Welcome to forums!
Yes, it will be considered as a short sale. If a short sale is recorded on your credit report, then you may have to wait for 3 years in order to get a mortgage. You may apply for mortgage prior to this but there are chances that the lender may charge a higher interest rate.
Feel free to ask if you have further queries.
Sussane |
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Bradley
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Post subject: 2nd Mortgage Charge off |
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I am in a similar situation. I fell behind on my 2nd, and tried to pay what I could, but they did not apply the 1800.00 I sent in toward my loan, they put it in a "black hole" until I came up with the entire balance due. I was trying to get a loan modification, and was told it would take 4-6 weeks. Into the 3rd week, I called to check the status, and was informed that my loan was charged-off. We were in the process of filing for bankruptcy, chapter 7, due to 35k pay loss. As far as I am aware, this charged-off loan is still a lien on my home, and cannot be discharged in a chapter 7 bankruptcy. I spoke with the 2nd mortgage collections after the charge off, and worked out a payment arrangement, and she said that there will be 0% interest, and no penalties if I cannot pay. I guess they just want any money they can get at this point.
I am wondering, if I file for chapter 7, does this loan show as late? I know that I can reaffirm this loan, but it must be current.
Also, the bank told me that they would not foreclose, due to the fact that my home has declined in value, and they would probably only collect 10% of what they are owed in a foreclosure, after the 1st is paid.
I am not sure what to do at this point. I meet with my bk lawyer on Monday. |
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