Posted on: 27th May, 2009 12:54 pm
My husband and I had fallen behind on our mortgage. He called GMAC today to see about a loan modification he was told the account was charged off and we could pay 26,000 and own our house free and clear with a charge off on his credit as settled. Or we could pay monthly payments for the next 10 years and have it as a settled. I called an attorney because I never have heard of this!! We never received any letters or foreclosure notices!! Has anybody else heard of this??
I have a client tying to go through a modification, they removed her from the modification program and said her mortgage was charged off, the modification department said they had never dealt with a charge off before. Does the client still own the property, can she still occupy the property? What if the lender does not sell the loan. She owes $68,000, her property appraised at $5,000.00. please enlighten me on this........
Welcome Guest,
The client still owns the property but the debt account is owned by a collection agency to whom the lender has sold off the account. If the lender has not sold off the debt, then the client or you should directly contact the lender and try to sort out the matter.
The client still owns the property but the debt account is owned by a collection agency to whom the lender has sold off the account. If the lender has not sold off the debt, then the client or you should directly contact the lender and try to sort out the matter.
my loan was charged off by chase mortgage. i was trying to get a premodification since may 2011. but chase seems to have consistently lost my application or could not get anyone assigned to the case. since my loan was charged off, is it possible to file chapter 13 bankruptcy?
Hi Lewis,
Though your debt has been charged off, you can still file Chapter 13. You can include the charged off loan in that bankruptcy filing. You should contact a local bankruptcy attorney and check out what steps you need to take in order to file bankruptcy.
Thanks
Though your debt has been charged off, you can still file Chapter 13. You can include the charged off loan in that bankruptcy filing. You should contact a local bankruptcy attorney and check out what steps you need to take in order to file bankruptcy.
Thanks
i have a vacant house i've been trying to short sale. i live in a different state now. it's been charged off. i would like to just be done with it. i plan on filing bankruptcy. will bankruptcy force the collection company's hand to do a deed in leiu?
Hi bonbon,
If you file bankruptcy and include the mortgage in it, then you won't remain personally liable for the debt anymore. In that situation, you can simply surrender the property and the lender or the collection agency can foreclose the property and recover their debts.
If you file bankruptcy and include the mortgage in it, then you won't remain personally liable for the debt anymore. In that situation, you can simply surrender the property and the lender or the collection agency can foreclose the property and recover their debts.
Can the lender refuse to foreclose or do a deed in lieu?
it is solely the lender's discretion whether or not he will foreclose the property or go for a deed in lieu of foreclosure. if he wishes, he can simply charge off the loan and let the collection agency deal with you.
I have a lawyer I am filing ch7 in fl ..I have a property with only 1mortgage it has been charged off,I was goin to do a short sell but now that its been charged off does this mean I can keep the proprty debt free andput charge off on ch7..or can I settle with whoever owns the debt now for pennies on the dollar and keep the property?
you can put the charged off debt in your chapter 7 bankruptcy filing and get a discharge from that debt.
After several years of requesting loan modification bank said account was charged off due to account inactivity, continued default, and lack of equity or monetary gain. Bank mentioned that I may receive a form 1099-C. What do I do?
Hi Lukas,
You should check out with your lender whether or not the debt has been forgiven by him. If the debt has been forgiven, then you may receive a 1099c form. depending upon the Mortgage Debt Relief Act, you may not have to pay taxes for the forgiven debt.
You should check out with your lender whether or not the debt has been forgiven by him. If the debt has been forgiven, then you may receive a 1099c form. depending upon the Mortgage Debt Relief Act, you may not have to pay taxes for the forgiven debt.
city is asking me to cut weeds on a property (in Georgia) the bank has charged off (1st mortgage). I live out of state and know no one to do this. If i do not cut the weeds what are the ramifications? Also if I sell or donate the property how does that affect the charge off?
Welcome rex,
If you do not cut off the weeds, then you may get penalized for the same. Even if you donate or sell the property, the buyer will ask you to pay off the liens on it.
If you do not cut off the weeds, then you may get penalized for the same. Even if you donate or sell the property, the buyer will ask you to pay off the liens on it.
hi i have not been able to pay my morgage. its been abt 10mts, the bank has said they charged off, so i am unable to do a short sale. do i need to from the house or can i still live there.