Posted on: 22nd May, 2007 10:07 am
i have a second mortgage that was ncluded in my chapter 7 bankruptcy. i understand that the second mortgage has a lien on my property. my question is: can they charge interest on the charged off loan? lets say i owe 13,000 (which was charged off) when i sell my house will i owe 13,000 or 15,000?
"Can they charge interest on the charged off loan? Lets say I owe 13,000 (which was charged off) When I sell my house will I owe 13,000 or 15,000?"
They can charge interest on the charged off loan.
They can charge interest on the charged off loan.
Hi Trrb,
Welcome to Mortgagefit discussion board.
Even after debt is charged off you still owe the debt and the interest on it.
It is an accounting procedure by which a company removes the interest on the debt from their financial statements. Later on if possible they would still want the debt to be repaid if any such possibility occurs.
Do let me know if you have any other questions.
Thanks
Blue
Welcome to Mortgagefit discussion board.
Even after debt is charged off you still owe the debt and the interest on it.
It is an accounting procedure by which a company removes the interest on the debt from their financial statements. Later on if possible they would still want the debt to be repaid if any such possibility occurs.
Do let me know if you have any other questions.
Thanks
Blue
Hi Trrb,
Welcome to the forums.
I would like to know whether your second mortgage lender has already filed a charge-off. And, if he has gone for it, then the interest will also be included on the charged-off loan amount. The total amount you owe will include the unpaid principal amount and the accrued interest.
Take Care
Welcome to the forums.
I would like to know whether your second mortgage lender has already filed a charge-off. And, if he has gone for it, then the interest will also be included on the charged-off loan amount. The total amount you owe will include the unpaid principal amount and the accrued interest.
Take Care