Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Do I need to pay for second loan even after charge off?

I was recently in foreclosure (twice) and during the first round, I received a 1099 (Cancellation of Debt) for my [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url]. I was just recently hit with back taxes for not reporting this. My mistake. However, in looking to [url=http://www.mortgagefit.com/refinance.html]refinance[/url] my home, my lender that charged this off now says that I need to pay this in order to get a clear title. So, am I responsible for both the loan and the taxes?

HELP!

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi boosted!

Welcome to forums!

As far as the tax loan and charge off is concerned, you will have to pay it off. You can negotiate with the collection agency for a payment plan and pay off the dues. In case of your first mortgage, you can apply for a deed in lieu of foreclosure and sell off the property. You won't be liable for the deficient amount resulting from the sale. However, it would lower your credit score by 250 points.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Tue, 10/13/2009 - 00:28

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi cynthia,

Your lender has charged off the loan. This means that your lender is no longer interested in collecting the dues from you and has sold off your mortgage to a collection agency. The collection agency will in turn collect the dues from you. To know more about charge off, check out the following page:
http://www.mortgagefit.com/know-how/secondloanchargeoff.html

Thanks

Like | Dislike | Share | Posted: Mon, 10/26/2009 - 22:16

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

mike r. I need your asst. please. I cant seem to get any answers from my lender.

Like | Dislike | Share | Posted: Mon, 03/07/2011 - 07:05 | Post subject:

jerry88's picture
jerry88 | Joined: September 16, 2011 03:42 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

This has a serious effect on your credit report and stays on your report up to seven years. So, if it is possible for you to pay it off then negotiate with the lender to make out a deal where you can pay the debt and the lender changes the status of the account to "Paid as Agreed". Try to get in writing if you attempt to do this.

Like | Dislike | Share | Posted: Fri, 09/16/2011 - 04:50

wcbpro's picture
wcbpro | Joined: March 2, 2011 11:35 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Mike Rodeno is correct! As long as you receive a 1099C and not a 1099A, your debt is cancelled and can't be sold to a collection agency. Your lender is "suppose" to also issue a "Certificate of Release" to clear the title but many times this is not done and must be requested by you.

Like | Dislike | Share | Posted: Tue, 01/01/2013 - 12:44 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks for your opinion, wcbpro!! :)

Like | Dislike | Share | Posted: Tue, 01/01/2013 - 20:59

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Lender can either issue a 1099, for which they get a tax credit from the IRS. or they can pursue you for a deficiency. It's either or and not both. I highly sugget you talk to your CPA or a tax attorney to help with this matter. Your lender is trying to double dip!

Like | Dislike | Share | Posted: Thu, 03/04/2010 - 16:25 | Post subject:

kayleemegn1's picture
kayleemegn1 | Joined: July 7, 2012 01:22 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Charge off is only an accounting process utilized by banks in which they classify a loan as non-collectible and does a tax reduction. Although it will lessen the amount you need to pay for your loan, this does not free you of your debt. You will still have to pay for the rest of the amount loaned at a lower interest rate.

Like | Dislike | Share | Posted: Fri, 10/19/2012 - 05:05 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I foreclosed on a home I purchased in California with an 80/20 loan, same company. I just noticed on my credit report that the lender "charged-off" the 2nd mortgage. Since California is a purchase money loan state, can the lender still sell this dedt to a collection agency? Would I still have to pay?

Thank You,

Like | Dislike | Share | Posted: Sun, 01/09/2011 - 21:14 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi mary,

Your mortgage dues, property taxes as well as home owner's insurance are all important items and all of them needs to be paid on time. If you miss out on any one of them, you can sued for it and there can be a lien placed on your property. You've mentioned that your first mortgage has been charged off. In that case, the first lender will not collect the dues from you. Rather a collection agency will contact you and collect the debts.

Thanks

Like | Dislike | Share | Posted: Sat, 04/24/2010 - 01:25

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am current with my 1st mortgage. I could not pay to my 2nd mortgage bank over 20 months. I am in NewYork. I filed for [url=http://www.mortgagefit.com/bankruptcy/chapter7.html]chapter 7 bankruptcy[/url] in 2007 and was discharged in 2008. My 2nd mortgage bank approved my loan for a charge off in 2008, sold it to a collection agency, however, collection agency returned it back to the bank after 7 months. So it is back with the same bank. My 2nd bank served me with foreclosure notice about 6 months ago. When I talked to the bank representative he said sale date is set in May. Can you please suggest what I shall do now or what my can do to me? Thanks.

Like | Dislike | Share | Posted: Sun, 02/28/2010 - 21:11 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

if the first loan forecloses on me since the 2nd load has been written off and i have a tax loan. should i file bankruptcy, will this clear everything?

Like | Dislike | Share | Posted: Tue, 10/13/2009 - 10:56 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

OK Mike! What if I am moving in 5-10 years? What happens to the cloud?

Like | Dislike | Share | Posted: Wed, 11/04/2009 - 09:07

ki2's picture
ki2 | Joined: November 5, 2010 08:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

"amnom.com/finance/what-happens-when-a-second-mortgage-debt-is-written-off/"

Regardless if a debt is charged off or not, the lien holder can still reserve the right to try to collect on it for up to 7 years.

The 1099 has been issued to you probably by how you filed your taxes, reading some of the irs code, if you claimed mortgage interest as part of your tax return and did not disclose the 1099, it sounds like you are responsible. It is best to talk to an accountant in regards to that portion of your question.

Good Luck!

[size=9:d9c0cadece][color=Red:d9c0cadece][Link deactivated as per forum rules. Thanks.][/color:d9c0cadece][/size:d9c0cadece]

Like | Dislike | Share | Posted: Tue, 01/11/2011 - 13:13 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

if i have a charge off dec 31 2009 and was sent thru the same company but their collection and then sent again to a third party recently to a 3rd party but charged off dec 31st 2009 what is the ramifications of the 2nd mtge i was told it didnt go thru legal so they aint trying to foreclose and cant since it was discharged what do you recommend and will still talk with a real estate attorney they want from 300 to 1300 a month on a 47000 balance also stated they can settle for 19k?

Like | Dislike | Share | Posted: Fri, 09/09/2011 - 17:09 | Post subject:

Jessica's picture
Jessica | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

[quote:e0c112ec13]Should we receive a 1099-c for the 2nd even if we do end up reinstating and continue to pay the 2nd down?[/quote:e0c112ec13]
Your creditor will not offer you a 1099-C form as your debt is not cancelled; rather you will still be paying for the second mortgage.

[quote:e0c112ec13]Do you think this would benefit us?[/quote:e0c112ec13]
If you can look out for rates lower than that of your current mortgage rate, then you are likely to benefit from a refinance. Also, if it can re-establish your credit history, then it is surely a good option.

[quote:e0c112ec13]Only 1 mortgage is reporting and no charge off,as of yet is showing on our credit bureau[/quote:e0c112ec13]
Since no charge off is being shown on your credit report till now, so if you can pay off the debts, your credit profile won't be affected negatively.

Regards,

Jessica.

Like | Dislike | Share | Posted: Thu, 08/03/2006 - 21:32 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi martha!

Welcome to forums!

Please post your query in details so that members/experts participating here can help you with their opinion in regards to your query.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 03/07/2011 - 22:58

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Welcome to the forums.

[quote:452f959a6e]How does the charge off effect title. Will the 2nd mtg still show?[/quote:452f959a6e]
Your debt will be considered as "charge off" if the lender does not collect the payments from you anymore. Usually, charge off affects the title as repayment of any debt against your property is necessary to ensure clear title.

The second mortgage will show up on your credit report only if you are unable to pay it off and the lender regards your debt to be uncollectible (that is, charge off).

[quote:452f959a6e]Any extra of course will go towards 2nd. Is this possible?[/quote:452f959a6e]
I think refinancing will be a good option. At least if you can refinance before the rates start to adjust, you will benefit from this process. But see that you can get a rate lower than the one at which you pay the current lender. Refinance will help you pay off the first and anything extra can surely be used to repay the second mortgage.

Thanks,

Caron.

Like | Dislike | Share | Posted: Thu, 08/03/2006 - 21:22 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I Think your lender is right you can opt for refinancing and pay off atleast your 1st mortgage.

Zeal_Deal

Like | Dislike | Share | Posted: Thu, 08/03/2006 - 19:35

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i recently received a mail from my lender saying to pay them what i owe on the 2nd otherwise it will be in foreclosure.i do owe them for 8 months .My first is with the same lender n is current. can they foreclose my home?

Like | Dislike | Share | Posted: Thu, 10/08/2009 - 09:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Also from previous posting...Both mtg's are with the same lender...

Like | Dislike | Share | Posted: Thu, 08/03/2006 - 17:46 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome anita,

Your query has been answered in the given page:
http://www.mortgagefit.com/inprocess/about53075.html

Please take a look at it. I hope it will help you.

Like | Dislike | Share | Posted: Fri, 09/09/2011 - 22:42

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello all, Due to unemployment our 2nd mtg is now 8 months behind. Our lender is willing to let us do a Short refinance. If we can't get approved for a half way decent program then we will have to do a short sale. Our liabilities well exceeded the fair market value of our home. My main question is....How does the charge off effect title. Will the 2nd mtg still show? The current lenders we are working with know are situation and seem to think we can still refi and at least pay the 1st off. Any extra of course will go towards 2nd. Is this possible? Should we receive a 1099-c for the 2nd even if we do end up reinstating and continue to pay the 2nd down? We have been approved so far for a 2/28 or 3/27. This would help us definately re establish a clean pay history again and hopefully refi before the rate starts to adjust. Do you think this would benefit us? Any info and advise would be GREATLY APPRECIATED!!!!! Thanks....Our state of residence is Indiana, in cause you need that info....also only 1 mortgage is reporting and no charge off,as of yet is showing on our credit bureau. THANKS!!!!

Like | Dislike | Share | Posted: Thu, 08/03/2006 - 17:44 | Post subject:

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

In cases of foreclosure, generally, a person loses his home and he also has to pay a tax bill. Since you have received a 1099-C form, it implies that your property has been sold off for an amount lesser than the loan amount. But you may not have to pay the taxes if you are insolvent.

Usually a debtor is considered to be insolvent when his liabilities exceed the fair market value of all his assets. So, whether you will have to pay the entire back taxes or a part of it depends on your liabilities. And, even if you pay off the debt, the 1099 will not be reversed.

I would suggest that you consult a tax professional for further clarification. He will help you to determine how much of the 1099-C is taxable. Be quick or else, the IRS may file Federal Tax lien and then take further action against you.

Thanks,

Caron.

Like | Dislike | Share | Posted: Tue, 05/23/2006 - 21:08 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi arturo,

Though your second mortgage is charged off, you would still be responsible for paying off the amount to the collection agency. If you do not pay off the dues to the collection agency, they can sue you for the debts.

Like | Dislike | Share | Posted: Wed, 12/16/2009 - 21:27

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i disagree in part with what you've said jameshogg. a charge off is a financial action on the lender's books, indicating that they don't anticipate receiving payment on the loan. it's not that they're no longer interested in receiving payments; it's that the borrower hasn't paid in such a while that they figure it's a lost cause to expect any further payments.

the money is still owed, and they may not have sent the account (yet) to a collector.

Like | Dislike | Share | Posted: Wed, 11/04/2009 - 12:21

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

we are behind in our [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] as i am paying for 2 separate residences.I am renting in a different state due to only job I could get and wife is in home that has 2 mortgages. Are you a lawyer? Is the above really true I wouldn't be responsible to pay off mortgage(2nd) due to a charge off given to me and no collector would be involved later down the road to put a wage deduction on me? or Judgement? where have you gotten this information from? My home is in Fl.

Like | Dislike | Share | Posted: Tue, 12/15/2009 - 19:35 | Post subject:

Buck's picture
Buck | Joined: May 22, 2006 03:33 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

OK, if I pay this off, am I still required to pay the 1099 (Cancellation of Debt) taxes also? What happens if I pay off the debt. Are they required to reverse the 1099? I believe the charge off occurred around mid-year 2004, I know the 1099 I received was for 2004. My first is a conventional fixed rate loan and the 2nd was a 15 year with balloon payment at the end. I'm just trying to better understand my options. Thanks for your help.

Like | Dislike | Share | Posted: Tue, 05/23/2006 - 10:22 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What do you do if you do not receive any 1099's for a foreclosure? Our home was foreclosed on Feb, 2010 and I still have not received any forms? It was Litton Loan (predatory lenders) google searches are full of this mortgage company being fraudulent and mistreating their homeowner. (all true by the way). Anyway, should I call IRS?

Like | Dislike | Share | Posted: Wed, 02/16/2011 - 13:00 | Post subject:

blue's picture
blue | Joined: October 21, 2005 09:17 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

As your charge offs are recent, it's better to pay it off. If it was 2 years older or more then, you would not have to repay the debts as you could have been able to manage a mortgage with the sub-prime lenders under that condition.

But in case of a conventional loan, you will be still required to pay it off even after 2 years.

Blue

Like | Dislike | Share | Posted: Mon, 05/22/2006 - 16:31

Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Welcome to MortgageFit Forums.

I am afraid to say that you need to pay them in order to get a clear title and enable you to refinance.

Now, a charge off means that the lender thinks the debt can't be collected from you and he writes off the loan from his account and absorbs the outstanding balance as a loss.

But it will not affect whether you still owe the money. You are not freed from the debt with a charge off. In a charge off the lender passes the loan to a collection agency to recover the debt.

This has a serious effect on your credit report and stays on your report up to seven years. So, if it is possible for you to pay it off then negotiate with the lender to make out a deal where you can pay the debt and the lender changes the status of the account to "Paid as Agreed". Try to get in writing if you attempt to do this.

God bless you.

For MortgageFit,
Samantha

Like | Dislike | Share | Posted: Mon, 05/22/2006 - 16:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

You must understand that a second mortgage charge off is not a forgiveness of the debt. It is only an accounting entry.

Douglas

Like | Dislike | Share | Posted: Mon, 05/22/2006 - 15:47

boosted95's picture
boosted95 | Joined: October 12, 2009 11:12 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am trying to following this as I have a first mortgage in which I am currently in a repayment program on. The second mortgage has been charged off and I have a tax loan as well.

I am considering just getting out of my house completly and moving in with my parents. I owe too much on the house and have too many repairs. So what options do I have?

Like | Dislike | Share | Posted: Mon, 10/12/2009 - 11:31 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I agree with Mike. The 2nd is charged off and you received a 1099 and paid taxes. That is it. however they will sell your bad loan as part of a larger portfolio to a collection agency and they may try to collect. If the statute of limitations has expired they have no recourse and can not sue you. So if you are in this situation tell them to eat crap. Chekc your credit report and ensure that the bad loan only stays on it for 7 years. Your bad loan will be sold and resold and each one of these collection agencies will try to collect. When you do not pay they will eventually charge it off and then resell it. They will report to the credit agencies regardless of dates. They have no clue what they bought in the first place.
Good luck. This is an area that nobody is paying attention to and very little regulations

Like | Dislike | Share | Posted: Wed, 02/03/2010 - 11:58 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Helping_user: Your post regarding Loretta still being obligated to pay the 2nd mortgage may not apply if she's in California. California is a purchase money loan state, which means if the 2nd mortgage was used to purchase the property (as opposed to being taken out after the property was purchased), AND the property is her primary residence, the 2nd mortgage company can not come after her for a deficiency judgment once the house has been foreclosed on -- only the property in this case can be used as collateral for the loan.

Like | Dislike | Share | Posted: Mon, 04/26/2010 - 00:10

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

[url=http://www.mortgagefit.com/know-how/filebankruptcy.html]Filing bankruptcy[/url] won't clear all your dues. The lender will still hold the lien on the property though you file for a bankruptcy. You will have to pay off the dues to the lender as per your payment plan. If you file Chapter 7 bankruptcy, then you will have to reaffirm the loan and pay it off. If you do not pay the dues, the lender will foreclose the property. Moreover, a bankruptcy does not discharge the back taxes. You will have to clear your back taxes.

Like | Dislike | Share | Posted: Wed, 10/14/2009 - 01:39

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Annie!

Welcome to forums!

Your query has been replied to in the given page:
http://www.mortgagefit.com/budgeting-finance/about49658.html

Take a look at it. Hope it helps you.

Sussane

Like | Dislike | Share | Posted: Wed, 02/16/2011 - 21:24

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We recently had a forclosure, which we also had a 2nd mortgage. When we were in preforclosure both mortgage companys approved a short sale because what we owed was now more than what the home was worth because of the declining market in our area. We received a contract on our home and for 2 months no word from anyone. Our agent called them every 3 days but 2 days before the auction date, they decided to refuse the offer. Our agent could see no other alternatives because both mortgage companys were fighting over the fact that the 2nd mortgage needed more money than the first was offering. I need to know if we are obligated to pay the taxes and I believe we are still bound to pay the 2nd still. We are still unable to pay anything towards the 2nd and they now are saying they will garnish our wages. We have already filed bancruptcy in 2001 so we dont have that option yet. I originally lost my job and the job I now have did not cover our payments anymore. Do you have any suggestions for us.

Thank you for your time.

Like | Dislike | Share | Posted: Fri, 07/20/2007 - 10:03 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I received modification on first loan, the second loan was charged off from same bank, What happens now? They said I hav't to pay them $5000.00 today or 10,000 by march 9, or they will turn 2nd over for legal action

Like | Dislike | Share | Posted: Wed, 02/23/2011 - 13:17 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

late. but, mike is right. if you get a 1099 from the lender, they are reporting that your debt is forgiven and that you need to claim that amount essentially as income and pay taxes on it. if you do this, you are not responsible to repay the debt. there also legally shouldn't be a lien if a 1099 was issued. 1099 are usually only issued once an agreement has been reached. act accordingly.

Like | Dislike | Share | Posted: Tue, 07/06/2010 - 14:05 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We have our 2nd showing as a "charge off" and we have not heared from them for over one year. However we are getting ready to file chapter 7 so I called the bank that the second is with and they were willing to lower the debt to 19,440 from 52,000. Should I take this offer of re-payment or should I try to get it even lower since they were wanting 10,500 with the short sale if we went that rought.

Like | Dislike | Share | Posted: Sat, 10/23/2010 - 14:40 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I did a loan modification
The bank lowered my interest rate from 10% to 6% for the life of the loan. Someone at the IRS said that the bank can now 1099C for difference between the the 10% and the 6% for the life of the loan. This could tax me on $60,000....how did this help me? Is this true or not?

Like | Dislike | Share | Posted: Thu, 01/21/2010 - 18:07 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi jk,

The lender has all the right to foreclose the property if you're unable to pay off the dues. In my opinion, you should contact them and check out if they can give you a payment plan to clear off the dues.

Thanks

Like | Dislike | Share | Posted: Thu, 10/08/2009 - 23:08

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi jollymon,

You should negotiate with the lender for the second loan and check out if they can reduce the amount for you so that it becomes affordable for you to pay off the loan. Once you start negotiating for better plans, I don't think they will send the account for any legal action.

Thanks

Like | Dislike | Share | Posted: Wed, 02/23/2011 - 21:51

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My mortgage company charged off my loan and said I do not have to pay until someone picks up the loan. Right now I have noone to pay no way to pay if I did either but I was not told anything of having to pay any type of tax other than property tax. I have no idea what is going on or what this really means. Can you explain exactly what I should expect?

Like | Dislike | Share | Posted: Mon, 10/26/2009 - 18:28

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I tried to get a loan modification with my lst.mortgage company but they said that my loan had been charged off. I am paying the second mortgage company payments and my past due property taxes. I need home owners insurance also. My income is fixed and I can"t afford to pay everthing. Which is the most important thing to pay?

Like | Dislike | Share | Posted: Fri, 04/23/2010 - 11:37 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

[quote:dfa31de04d] We are still unable to pay anything towards the 2nd and they now are saying they will garnish our wages.[/quote:dfa31de04d]

Which state are you in? I am asking as in some states after getting a deficiency judgment the lender cannot garnish wages for recovery of his dues.

Like | Dislike | Share | Posted: Fri, 07/20/2007 - 19:11 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Ya, if the second mortgage isn't paid off, the lender can proceed to garnish wages. But I could not get as to what taxes you are talking about? The property taxes or the taxes one pays due to debt cancellation But none of the lender has cancelled the debt through charge-off isn't it? oh and one more thing, garnishment can happen but it will depend on whether you state allows it.

Like | Dislike | Share | Posted: Fri, 07/20/2007 - 21:23 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

YOU PEOPLE ARE ALL..YES ALL WRONG!!!!!!!!!
WHEN A LENDER CHARGES OFF THE 2nd LIEN...THEY WILL 1099 YOU FOR THE DEFICIENCY AND YOU WILL NOT..YES I SAID NOT HAVE TO REPAY THE DEBT..YES YOU DON"T HAVE TO REPAY THE DEBT...YOU WILL HAVE A CLOUD ON TITLE WHICH MEANS NOTHING IF YOU AREN"T MOVING.

GET A CLUE PEOPLE..>YOUR DISINFORMATION CONFUSES EVERYONE IN THE FORUM

MIKE

Like | Dislike | Share | Posted: Wed, 09/05/2007 - 01:39 | Post subject:

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Mike,

Welcome to the forums.

It is true that the lender sends form 1099-C when he forgives the debt. And, the borrower has to pay taxes on the forgiven debt. But if he can afford, the borrower can always pay off the debt even after a few years and then claim the refund from the IRS. There is a specific time period within which this should be done. So, no one's saying that the debtor has to pay off the debt, it's just that if he is able to gather funds after the charge-off, then he can pay off the debt and improve his credit.

Good luck :)

Like | Dislike | Share | Posted: Wed, 09/05/2007 - 03:05 | Post subject:

Page loaded in 0.579 seconds.