Posted on: 06th Mar, 2009 06:04 pm
Post Your detailed question here.
My 2nd mortgage company (HSBC) told me that my debt is in danger of being charged off. What does that mean? What are the ramifications if that happens? Could I be sued?
My 2nd mortgage company (HSBC) told me that my debt is in danger of being charged off. What does that mean? What are the ramifications if that happens? Could I be sued?
"my debt is in danger of being charged off. What does that mean?"
if you are behind your payments and your bank tells you that you are in danger of being charged off. It solely means that your bank is going to report the discrepancies in repayment to the credit bureau. So one of the disadvantage of this is that your credit report show negative mark on it and it remains there for 7 yrs if you do not work it out with the bank about repayment.
ramification of this could lead to garnishment.If you have money better you pay it off and then relieve yourself from the further complication.>>>>> :wink:
if you are behind your payments and your bank tells you that you are in danger of being charged off. It solely means that your bank is going to report the discrepancies in repayment to the credit bureau. So one of the disadvantage of this is that your credit report show negative mark on it and it remains there for 7 yrs if you do not work it out with the bank about repayment.
ramification of this could lead to garnishment.If you have money better you pay it off and then relieve yourself from the further complication.>>>>> :wink:
hi wfox
i would like to disagree with manoj gopale here. i guess, you are not paying the 2nd mortgage regularly. in that case, the lender has the right to sell off your mortgage to a third party collection agency. this is known as mortgage charge off. once the mortgage is charged off, the collection agency will collect the dues from you. you should also note that once the mortgage is charged off, it becomes an unsecured debt. yes, it will definitely affect your credit score. to know more about second mortgage charge off, check out the following link:
http://www.mortgagefit.com/know-how/secondloanchargeoff.html
thanks.
i would like to disagree with manoj gopale here. i guess, you are not paying the 2nd mortgage regularly. in that case, the lender has the right to sell off your mortgage to a third party collection agency. this is known as mortgage charge off. once the mortgage is charged off, the collection agency will collect the dues from you. you should also note that once the mortgage is charged off, it becomes an unsecured debt. yes, it will definitely affect your credit score. to know more about second mortgage charge off, check out the following link:
http://www.mortgagefit.com/know-how/secondloanchargeoff.html
thanks.