Posted on: 01st Jul, 2008 09:36 am
My borrower had a small mortgage with a 5 yr term with a maturity date of 1987, the acct was charged off, went through bankruptcy in 1994 and now the lender still says they are owed $3100?
Welcome Guest.
Charge off doesn't mean that the debt is forgiven. So your borrower still owes it. But in case your borrower cannot recognize the debt or feels that he has paid off the debt then he can ask the debt collector to validate the debt. But it seems that he can recognize the debt and knows that he still owes it. So he should better pay it off ASAP
Let me know if you have further queries.
Charge off doesn't mean that the debt is forgiven. So your borrower still owes it. But in case your borrower cannot recognize the debt or feels that he has paid off the debt then he can ask the debt collector to validate the debt. But it seems that he can recognize the debt and knows that he still owes it. So he should better pay it off ASAP
Let me know if you have further queries.