 jenkin7
Joined: 04 Jun 2007
Posts: 3429
Location: Hawaii
514.13 Dollars($)
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 Posted: Fri Apr 03, 2009 12:39 am Post subject: |
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Hi MariaChase,
A mortgage charge off does not mean the debt has been forgiven. It means that the lender records it as a loss for accounting purposes as they think they cannot recover the balance loan amount. They write off the loan from their account and pass it to a collection agency for the recovery of the debt. Thus, your aunt will now have to make the payments to the collection agency. If she makes the payments regularly, the home will not be foreclosed on. |
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