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second mortgage charge off

Posted on: 10th Nov, 2010 08:54 pm
about 5 yrs ago i had gotten a second mortgage throug beneficial (i was 25yrs old and didn't understand the in and outs ). they gave me a pretty high interest rate, when i questioned that. they simply said don't worry about it. you can refinance in a year. they also loaned me way over what my townhouse was worth. 2 yrs later i tried to refinance but no banks would because ithe loan to value. i made a huge mistake thinking that my townhouse would increase in value in a year or so then i would try to refinance then. i spend some of the money on home improvements, furnature and of course other things. i didnt really think it was such a big deal since i was counting on refinancing. well that never happend. i struggled for the last 2 years to make the pmts. my income has decreased in the last year. six months ago i tried to settle with them, they gave me the run around for 2 months trying to get me to send in the settlement money but would not give me anything in writing, scaring me with time limit to send in the money or the settlment would be void. i did not send the money because every time i called they would give me conflicting answers and refused to put anyting in writing. after the two month hassel. i just got sick of it and put itb up for short sale. my first mortgage started forclosure process but i do not have a hearing date set yet. however i just pulled my credit report and beneficial has
closed the account with a charge off. i thought they were suppose to wait unti the the forcosure and the auction was done. i know that the charge off does not mean ik dolnt owe it. but i have bo way to pay them that amount. can i still do a dead of lou. or what are my best options. i am not that worried about my credit, but i am worried about them taking me to court and garnishing my wages. i have already made arrengments to move out since no one can give me clear answer when the forclosure will be over. do you have any suggestions. all of this is so confusing. plese help!
thank you
jasmine



st got sick of it and b
llput
Hi jazzey!

Welcome to forums!

It is not mandatory for the second lender to wait for foreclosure in order to charge off the loan. They can charge off the loan prior to foreclosure. If the lender has assigned the account to a collection agency, then they can come after you for the balance dues. Though the second loan is charged off, you can go for deed in lieu of foreclosure.

Feel free to ask if you've further queries.

Sussane
Posted on: 11th Nov, 2010 01:33 am
If they have charged off the account then it will go to collections, you will have a few options. 1) settle for a less amount than you owe (which usually requires a large sum of money) 2)try to restructure a payment plan that may help you get back on track. If you are letting the first lien go to foreclosure and am not worried about keeping the house, you may still be responsible for the second lien and should reach out to them to see what options you have.
Professor Loan Mod
at your service!

[Links deleted as per forum rules. Thanks.]
Posted on: 11th Nov, 2010 12:50 pm
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