Can a charge off still foreclose

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Can a lender who charges off your 2nd assign the mortgage to another lender who can foreclose?

smckaybiz · Posted: Sat Aug 09, 2008 6:57 pm Post subject:

Welcome to the forum Judy.

From what I understand even if a lender charges off any kind of mortgage loan they may still decide to come back and forclose. As long as they still have a lien against the property they can legally do so. They don't even have to assign it to another lender. A lot of lenders do this just to take the tax write-off.

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The lender charged off the debt and sold the note to a company who is not a lender. They are trying to foreclose before asking for any payments. Immediately went for foreclosure upon transfer of the charged off note on the 2nd.

sara · Posted: Mon Sep 01, 2008 4:13 am Post subject: RE:

Hi Judy,

Welcome back to the forums.

Perhaps your lender has sold off the debt to a collection agency. However, the collection agency usually doesn't foreclose. They usually collect payments from debtors at regular intervals or in lump sum.

I suggest that you call up your lender and request them to explain what's happening because you could be in trouble over payments demanded by the collection agency. Also, ask about the service profile of the company to which the second mortgage has been sold off.

Take care

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