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.

My second mortgage became a charge off - What is that?

Our 2nd mortgage with beneficial was an original 15,000.00 loan. It has escalated to 32,000.00. They are going to charge off this month. My husband is disabled & 1 child disabled. The loan is only in his name. But my name is on the deed. I understand a 1099 we will receive. What happens to the charge off. with a lien against the home. Will it come off in 7 years? Thanks, Melissa

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Melissa,

If the lender wants to charge off [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] debt, it means that the unpaid loan amount with interest will be reported as a loss for the creditor when he uses an accounting method for calculating tax purposes.

A Second mortgage charge off does not mean that you no longer owe the debt. The creditor has the right to collect the debt long after the second mortgage charge off and for this, he takes the help of a collection agency most often. Usually charge-offs occur when the monthly loan payments are not made for more than 6 months.

Thanks,

Sara

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hi Melissa,

I can feel what you are going through. But don't lose hope. Let's hope that things will be better after some time. The only thing is that you need to be confident and have patience.

Regarding the charge-off, it does have a negative affect on the credit report; most charge-offs stay on the report for 7 years and 180 days from the date of the first non-payment (under the Fair Credit Reporting Act).

Paying down the debt cannot remove the charge-off from the report. Instead, it will be updated to a "paid charge-off" after the unpaid debt is paid off. Often a creditor may accept a partial payment towards the debt and in that case, the account is reported as "settled charge-off".

Once the charge-off is marked as "settled" or "paid", the lien on your house will be removed. It does not matter if the loan is in your husband's name. If your name is on the deed and you are able to pay off a certain amount towards the unpaid debt, the creditor may settle the charge-off and remove the lien. You can thus save your home.

Thanks,

Caron.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

We did a short sale in 2006 and we sold the house for what they wanted to sale for but on our 2nd they are saying that it was paid for less than owed but also shows collection account. I am trying to clear this up but when I call I get the account is paid in full then I called back to get a fax copy of our conversation and the next person told me it was a collection but charged off so now it stand as if it was a foreclouser. What can I do about this. We were suppose to close escrow tomorrow but the loan company told us Tuesday that they can't do it because this is showing like a foreclouser. Please help any advice would be appreciated.

Thanks,

Sheila

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Sheila,

What you are saying is totally confusing. see if the second mortgage charge off that doesn't mean that the mortgage is paid in full. It seems it is now in collection and you should pay it off. So pay it of ASAP before going for another mortgage.

You have gone for short sale. So it should not shown foreclosure on your credit report. So pay the due debt off and ask the credit repairing agency to update your report.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hi Sheila,

Foreclosure and collections are two different issues altogether. So, you need to get clarified as to whether the second is shown to be foreclosed or charged-off on your credit report. Depending upon how it's reflected on your report, you need to dispute inaccurate information, if any with the credit bureau. By the way, did you pay the second mortgage in full or was it a partial payment?

Regards,

Jessica.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hello all.

Mortgage charge off means that the lender has written it off as bad debt but the borrower is still liable to pay it off. Mortgage charge off make a bad effect on the credit report. So if it is possible, it is better to pay it off.

Why are you going for a new mortgage when you have not yet pay the outstanding balance of your previous mortgage? First pay it off. That will make a good effect on your credit and help you to improve your credit. Then you can go for a new mortgage.

Let me know if you have any further question.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

cliff3's picture
cliff3 | Joined: May 5, 2008 02:15 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Melissa,

It appears you are asking a question about your husbands credit and how to improve it from this charge off that is on his report is that correct?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hi cliff.

Are you saying charge off improve credit??? oh I do not think charge off can help anyone to improve credit. If you only pay it off that will help you to improve the credit. Isn't it???

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

What the bank is saying that anytime you do a short sale it shows as a charge off. But we did a short sale and sold the house for what they asked for. I did contact them and they said they had to show some where, where it says charge off but it was suppose to be on their books not my credit report that is what they told me. What is says on my credit report is that the balance was paid in full for less than the amount. I had a prepayment penalty on my loans and that is what they took off to settle the loan through short sale.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

cliff3's picture
cliff3 | Joined: May 5, 2008 02:15 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

So no charge off is shown on your credit report? Also, what about your second mortgage is it paid or was it part of the negotiated short sale?

Sorry, Niics I just saw your question from an earlier post and I definatley was not saying a charge off would help your credit.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

yes both 1st and the 2nd was included in the short sale. We did sell for what they wanted to sell for but on my credit report it is showing a charge off and an m9 (I don't know what this is).

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

yes a charge off is showing on my credit report because they said anytime you do a short sale it is considered a charge off.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi sheila,

Short sale means you have sold the property in less than what you owe. So you have not paid the full payment. As Niicss mentioned charge off does not mean that the debt is forgiven and you still owe it. So better pay the due debt off. That will help you to improve the credit report.

You should inform the credit bureau that it was short sale not foreclosure. You can also talk with an attorney on this regard.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

I was just informed yesterday that fha made a mistake and said that we had a foreclouser but in fact it was the people that bought it from us, they figured it was the same loan company so they thought it was us. They never bothered with pulling the deed or what ever it is called to check to see if it was cleared under our name. Our loan company that we had a short sale with agreed that it was reported wrong but to get them to clear this matter is taking forever.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Welcome back sheila,

This is really annoying and ridiculous. After you sold the property haven't they recorded the deed in the deed in the county recorder's office? the mortgage should be on their name. So how can foreclosure shows on your credit report?

Contact the Credit reporting agencies and request them for correcting Errors.

Keep us posted.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Wow that needs to be taken off of your credit report! The M9 will need to be taken off by a credit professional because it requires that your whole credit report be analyzed to determine what the best way to have it removed would be.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

cliff3's picture
cliff3 | Joined: May 5, 2008 02:15 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Sorry last two post where from me.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

I have a question. We are having trouble paying our seconde mortgage but not our first. In This depressed market our house isn't worth what we bought it for. Will the [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] forclose on our first even though the first is current? Also, the first and second are with the same company. Popular Mortgage Servicing Inc. Please Advise.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Siciliano,

Welcome to the forum.

Second mortgage is a secured loan. So, even the second mortgage lender can foreclose although your first mortgage is current. But as your the first and second mortgages are with the same company, you need to consult with the company and see whether they can offer you any solution.

BTW can you tell us about the type of mortgage that you have and the interest rate? If you are paying higher interest rate then you can refinance the present mortgage with a lower monthly payment.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Thanks Larry

I have an 80/20 for 630,000. The first is 505,000 and the second is 125,000. Interest on the first is 7.38 and the second is 10. something. Is a 125,000 really going to foreclose on a 505,000? I tried to work something out but now since our credit has tanked because of late payments we can't. The representative on the phone said that the 2nd won't forclose on 505,000, probably just charge it off and issue us a 1099. If thats the case I'm fine with it, but want to expert advise and people familier with these issues. My home is probably worth 590,000. now with the housing prices going down. Now that you have all the info, what do you recommend?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Siciliano,

Welcome back.

Probably as both the loans are from the same mortgage company that is why they are not foreclosing. If the second mortgage is charged off then it does not mean that the debt is forgiven. You still owe it and need to pay it. But if the mortgage company charges of the second mortgage then you need not to sell the property but try to pay the due debt. That will have a good effect on your credit report.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Larry,

If they charge it off, can I just do a bankruptcy and put it in with that?
I just cannot afford the second mortgage. Our primary business was real estate and as you know it's taken a nose dive. I thought there was legislation where they were going to buy high interest rate loans and refinance? any word on that? I would like this company to do an "in-house" refinance and put it all together at a lower interest rate. You would think they would want to, but in the absense of that I figure i'll pay the first, and try to work something out later with them? I did get a notice of default but it wasn't from my mortgage company, it was some other company. please advise.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Welcome Back Siciliano.

You need not to file bankruptcy. I feel refinance is a good option for you. Talk with the mortgage company and request for refinance. If you can refinance both the loans into one that will be good for you.

If your mortgage company can not help you out with refinancing then you can shop for lenders for refinancing.

Let me know if you have any further questions.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

hi, can a mortgage charge off turn into a foreclosure?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

will a charge off mortgage put a lien on the property or will it only show up in the borrowers credit report? thank you.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hi Jenny,

Welcome to our forums.

As far as I understand, a charge-off cannot turn into a foreclosure. I mean the lender has issued a charge-off because he thinks he won't go after your debt anymore though you actually owe it. Charge-off implies your debt is considered as uncollectible. So be rest assured, as the lender won't foreclose.

The charge-off will show up in your credit report for 7 years. However, if you pay off the charged-off debt within a few months/years, you can negotiate with the lender to update the charge-off status on the credit report as "paid charge-off" or "settled charge-off". An even better option would be "pay for delete" but that's only possible if you quickly pay off the debt.

Good luck

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

I am not able to pay my second loan due to my husband's recent illness. We are considering [url=http://www.mortgagefit.com/know-how/filebankruptcy.html]filing bankruptcy[/url]. My question is will we be responsible for the 2nd loan if we continue to pay for the 1st loan and stay in the home?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hi guest!

Welcome to the forums!

If you file a bankruptcy, then both the loans will be included in it. Then you will not be able to live in that house. However, if you keep on paying the first loan, still you will be responsible for your second loan as well. You will have the option of short sale and deed-in-lieu provided if the lender accepts.

Feel free to ask if you have further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | 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 on my credit report due to a foreclosure, can I be
forced to pay from via my direct deposit bank account

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi glenn!

If your original mortgage lender has charged off the debt to a servicing agency, then you will have to pay the debts to the servicing agency. They will pressurize you to pay in any way and clear off the debts.

Thanks,

Jerry

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

If you sell your house and pay off the mortgage, how much does this effect your credit to the better?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hi MEME!

This will depend whether you are selling the property or the lender. If you sell off the property and pay off the loan without any deficiency, then I don't think your credit will be affected. In case there is a deficiency which you cannot pay off, then the lender may place a lien on the property and liens will surely affect your credit. If you are going for a short sale, then your credit will be affected by 75-100 points.

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

My finance went through a divorce when the market was hot. He paid his ex 175,000 through a second mortage. Now his business has slowed down alot and couldn't make the payment on the first and the second. Tried to file for bankrupcy, lawyer didn't show up for court. Backrupcy denied, now paying twice the amount the make up the payment on the first. Didn't pay anything on the second. Now the property taxes are being sent to the sencond and owe 5 times the amount to taxes. How does his situation apply to new guidelines with help from government or renigotiate the mortgage payments.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hi vickie!

Welcome to forums!

Are you speaking about the mortgage bailout program? Well, if your lender is a part of that program, then he can offer you the facilities available under this program. In case, if he is not a part of this program, then you will have to negotiate it with the lender.

Does your lender know that you are facing such a problem? You can send him a hardship letter as well.

Feel free to ask if you have further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

I am going thru a divorce and moved to a different part of the state. I am paying on a mobile home where i was living. I can not afford to pay rent in the new city and the mortgage on my mobile home. I can not oversee the home and had tried renting it out but ended up having to evict the tenants, so now it is empty and subject to vandalism. I still owe $30K on it. Any suggestions?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hi elelover,

You can try selling the property. However you should remember that once you sell the property the mortgage will be due. You can also contact the lender and try out for a short sale or a deed in lieu foreclosure. But you should remember that the lender will not be ready for a short sale or a deed in lieu unless you default on the mortgage payments.

The short sale and deed in lieu procedures are similar. You will have to give away the property to the lender. The lender will sell the property in the market and recover the debts. Due to the market situation, there will remain a deficient amount from the sale of the property. In case of a deed in lieu, the lender will forgive the deficient amount whereas in case of short sale, you need to pay the deficient amount. To know more, check out the following links:

Avoid Foreclosure with a Deed-in-lieu.
Short Sale Affects Credit Score - how many points do you lose?

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hello there: My home is currently on the market as a short sale because I haven't been able to make the payments. The [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] is telling me they'll charge off my loan. Can anybody tell me how that will affect my short sale? Thank you for your help.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hi christina,

Charging off second mortgage does not mean that the lender will forgive your payments. It only means that the second mortgage lender has sold your second mortgage to a collection agency who will in turn collect the payments from you. I don't think this will affect your short sale in anyway. To know more about second mortgage charge off, check out the following link:
http://www.mortgagefit.com/know-how/secondloanchargeoff#19964.html

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

We've tried several short sales, but the second - B of A - wouldn't budge on their 85% requirement. We brought the first current hoping the second would initiate the foreclosure, giving us protect from deficiency judgement in CA.

They are telling me they have decided to charge off the loan. Two Quetions:

1. How can I sell the house in this situation?
2. I assume they can't go after a deficeny judgement because they have choosen not to foreclose. Am I right or wrong?
3. The B of A agents have been telling me once written off they will consider new guidelines for a settlement.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Welcome CaliforniaTim,

Your query has been answered in the following link:
http://www.mortgagefit.com/second/chargeoff-mtg.html

Please check it out. I hope it will help you.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

I live in IN, i have filled bankruptcy but want to keep my home. I have tried to get the second lien holder to write down some of the note, but they refuse. I owe 175k on the first and 193 on the second. the home is only worth about 240k. My attorney said that I can not file on the second and stay in my home. How do I get them to write it down, I won't be able to refi because my scores will be to low after the bk. Do I stop paying the second and let them foreclose? in order for them to foreclose they would have to eat the 193k to them selves, and pay off 175k to the first lien holder just to sell it for less, right? I need help.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hey larry,

Did you file [url=http://www.mortgagefit.com/bankruptcy/chapter7.html]Chapter 7 bankruptcy[/url]? Did you reaffirm debts after the bankruptcy was discharged? If the second mortgage company forecloses on the property, then it will also have to pay the first mortgage company. So I don't think they will foreclose on the property.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

i have been told my mortgage company forgot to put a charge on my property when i remortgaged can you tell me what this means please thank you

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hi karencharnock,

Your query has been answered in the given link:
http://www.mortgagefit.com/refinance/charge-back.html

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

Thanks.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

what happens if you have a charge off on your second mort. does that mean u can keep your house and just pay the first?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

My bank called and asked if we want to re-mod the first (they Carry both liens), house in foreclosure right now, recording a lien to the house is their way of getting paid for both? and if they charge it off, are we getting a 1099?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hi,

To Jennifer,

Second mortgage charge off does not mean that your lender has forgiven the second mortgage debts. It only means that your mortgage has been sold off to a collection agency who will in turn collect the dues from you.

To Grace,

If both the loans are with the same lender, then I guess, he is giving you an option for loan modification. In this process, you will get a new repayment plan in order to pay off the dues. Charge off does not mean your loan is forgiven. You will have to pay the mortgage dues to a collection agency to whom the lender has sold off your mortgage. As your loan is not forgiven, the question of 1099 form does not arise.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hi Adonis
Thank you for answering my question.
Now, please clarify this, if a mortgage loan is charge off, my understanding is, it becomes a debt (that I need to pay) but no longer a mortgage, how can it be lien to your property, my understanding is only mortgage loans and taxes can lien your assets. Please reply

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

Hi Grace

It's correct that once the mortgage is charged off, it becomes the debt which needs to be paid off. I don't think it will be a lien on the property, however, a mortgage charge off will definitely affect your credit score.

Thanks.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

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

2nd Mortgage has been charged off & sent to Collection. Is the debt considered a mortgage or simply a debt and can it be included in bankruptcy Chapter 7?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:02 | Post subject:

Page loaded in 0.105 seconds.