Posted: Thu Nov 13, 2008 7:44 pm Post subject: Will a 2nd mortgage charge off still be a lien on my propert
I am hoping my lender will issue a 1099-C form for the charge-off of my second mortgage. I am going to claim the unpaid balance on the second mortgage /charged-off amount as income on my income tax return . At this juncture, there will be no lien regarding this second morgage on my property, correct ?
It's a very interesting legal issue, and not really a mortgage question per se, so if I were you I would consult an attorney on the issue as well.
If they do not issue a lien release and someone record it legally, the lien will remain unless you take them to court over the issue and win.
Charging off a debt is just an accounting practice and does not relieve the borrower of the indebtedness. I am not sure whether issuing the 1099 would relieve you or not. Chances are the lender will argue that the 1099 could be revised within the IRS limits and does not alter your contract with them. _________________ Carl Pruitt
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Mortgage charge off means that the original lender is not interested in collecting the debts from you and thus they have sold it to a collection agency. This collection agency will henceforth collect the debts from you. Mortgage charge off does not mean that your debts were forgiven. You will have to pay them but to the collection agency. So I doubt whether the lender will issue you a 1099-C form.
Thanks
Guest
Posted: Fri Nov 14, 2008 7:12 am Post subject:
No, they will not record a mortgage release/satisfaction until the debt is paid.
Regina Guest
Posted: Fri May 22, 2009 10:42 am Post subject: Mortgage charge off
I was just told today that i have a charge of 30,000 on my 2nd mortgage; Will I still Loose my Home; Or can i just make arrangments and pay what i can for now?
It is unlikely that you will lose your home due to the second mortgage charge-off. But a lien could be placed on your home due to non-payment of the loan. Contact your the collection agency, do a debt settlement with them and pay off the debt through regular payments to avoid any judgment or lien.
gregporsche
