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savior70
Joined: 25 Mar 2009
Posts: 1895
Location: Florida
261.84 Dollars($)
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To curious,
Collection agencies often agree to accept a short payoff. How much they will settle for depends on how successfully you can negotiate with them. If you make an agreement with the collection agency, you can select your payment amount. But the collection agency has to accept that, otherwise they will not enter into the agreement. Once the charge off has been paid in full, it will definitely have a positive impact on your credit. |
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dyuc
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Post subject: charge off 2nd and 3rd mort |
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We are going through a modification process for our home. The value has gone significantly in our home. Once it was worth 600,000 now its value is 217,000. The modification office advised us the would best way to go is to charge off the 2nd and the 3rd. He mentioned certain things that have been approved in California that would forgive the debt. Anyone know about it?
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sideways
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Post subject: short sale |
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| Gotta disagree w/ Caron above. You need to do more than " The only thing is that you need to be confident and have patience." You need to negotiate to pay back what you owe or be ready to deal with a possible lien and/or bad credit rating. Confidence and patience may help but definitely not the only things you need. Money helps. Good negotiating helps. |
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Gina
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Post subject: When is Mortgage loan charged off? |
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| My 2nd mortgage was charged off after 150 days while I was in a loan modification process. No notice was provided, as I thought it was 180 days. I spoke with the bank and was told that they are regulated to charge off loans at 150 days. What's the statutes? What gov't agency regulates banks process to charge off loans? Bank rep was unhelpful in providing this information. Help!! |
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| We modified first mortgage but 2nd mortgage did a charge off |
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sunnyca2009
Joined: 04 Aug 2009
Posts: 1731
35.55 Dollars($)
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The the lender will send that for collection and you will eb laible to pay the same
But you cna negotiate with the collection agency and work out a payment plan |
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raffi
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| So I am modifiing the 1st. The second charged off. I am keeping the property. So the 2nd lien will remain on the property forever? or until I settle the debt. What if I decide to sell after 10 years? Is the lein still there? or will it eventually drop off? |
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savior70
Joined: 25 Mar 2009
Posts: 1895
Location: Florida
261.84 Dollars($)
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Hi,
The second lien will remain on your credit even though the debt has been charged off. You're still responsible for the loan and the collection agency will come after you to recover it. You can negotiate with the collection agency to settle the debt and then get the lien removed from your property. The lien stays on your house until the statute of limitation (SOL) for the debt expires. The time limit for the SOL depends on your state laws. |
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SF
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Post subject: charge off and short sale |
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during negotiation for a loan mod on my home, which has a 1st and 2nd, the second became "charge off"- the loan mod is comming to a end and depend on what the investor decide to do I may have to short sale my property. what is going to happen to the 2nd.
Another question: if I would file BK, would the second be included in it, and can I still save my house? |
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jenkin7
Joined: 04 Jun 2007
Posts: 4537
Location: Hawaii
728.43 Dollars($)
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Hi SF,
If the second mortgage has been charged off and sold to a collection agency, your original second lender does not hold the mortgage anymore. You will have to do the negotiations with the collection agency. You will owe the second mortgage debt, even after you short sell the property. The collection agency will come after you for the balance of the loan.
You can check out the option of filing chapter 13 bankruptcy with a bankruptcy attorney. It will help you reorganize your debts and keep your home. There is a concept of lien stripping in chapter 13, where the second mortgage can be discharged, if the property value is not enough to satisfy the second mortgage. Bankruptcy laws vary in different situations, which is why you need to consult a bankruptcy attorney to know about it. |
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steamed
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Post subject: my second mortgage became a charge off |
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| My second mortgage became a charge off, however th CA is trying to collect th full amount of the loan. The loan originated in 2000 with a pay off date of 2010 and regular payments were made from 2000 thru 2007. Do I owe anything on this loan? I feel that I owe nothing because I have already paid more than the original amount of the loan and a substantial amount of interest. |
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sm
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Post subject: 2nd mortgage charge off |
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| I had a 2nd mortgage with a balance over $100,000 charged off last month. I negotiated a lesser amount to pay if I pay it in full. If I do this, will this debt be satisfied? |
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savior70
Joined: 25 Mar 2009
Posts: 1895
Location: Florida
261.84 Dollars($)
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To steamed,
You need to ask the collection agency how much you still owe on the second mortgage. If you have made payments from 2000 through 2007, there seems to be no reason why you would still owe the full amount of the loan. Have you been making interest-only payments? Did you stop payments in 2008 and 2009? If you did, chances are that the missed payments and accumulated interest have been added to the principal balance. But anyway, you must ask for a detailed explanation from the collection agency regarding how much you still owe them. They are bound to provide you with this information.
To sm,
If you can convince the collection agency to accept a short pay off and pay it in full, the debt will be satisfied. But when you make the payment, make sure you get it in writing from them that the debt has been paid in full and you no longer owe them anything. When you negotiate, ask them to report the debt to credit bureaus as "paid as agreed". |
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anonymous1
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Post subject: 2nd mortgage |
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My question is that i recently modified my loan and the bank never told me what was going to happen to the 2nd loan. The modification was just done like 2 months ago and i just found out that i have a negative on my loan. i found out that my 2nd loan is showing up as a charge off $97,427.00-written off. They are telling me that i need to arrange payments but i can not afford it and if i dont do it my house will have a lien for forclosure but before they will try and do wage garnishment. the house has no equity and i have been told that i dont need to make payemnts from the bank where i have the first loan. i was told that i need to do a 1099 but i have not received this and the person i hired to help with the mod keeps saying that i dont need to need to make payemnts. can anyone help? I just dont know what to do if i am being misled or what will really happen if i dont make payments. the collection agency is saying that they can settle but no bank will loan me anymore money when i have that negative :(
thank you
ms desperate
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jenkin7
Joined: 04 Jun 2007
Posts: 4537
Location: Hawaii
728.43 Dollars($)
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Hi anonymous,
The second mortgage has been charged off, but this never means that the debt has been forgiven. The lender can sell off this debt to a collection agency, which will collect the debt from you. Then, you will have to do a settlement or set up a payment plan with the agency. If the first lender has accepted a loan modification, it is good for you. But the lien due to the second mortgage still remains on your property and the house can be foreclosed to satisfy the lien. I think you can file bankruptcy Chapter 7 and have the second mortgage discharged. If you can afford the first mortgage, you can reaffirm it and continue making the monthly payments. |
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