Posted on: 07th Jan, 2009 09:34 am
I have an 80/20 and want to charge off the 2nd. I understand I will be sent a 1099 form. How much would I have to pay once this is done? Would I pay the full amt of the 2nd or a percentage of the mtg amount (to the IRS)? I have no equity and neither loan is in Foreclosure. I am behind 3 months on the 2nd and 2 (at the end of Jan) on the 1st. I want to keep my home and I will be ok paying the 1st. Any advise???
hi nanoro,
charge off does not mean that the second mortgage lender will forgive the loan. it only means that the lender will sell off the mortgage to a collection agency who will in turn collect the dues from you. as far as i know, you will not receive a 1099 form from the lender.
you will have to speak to the second mortgage lender and check out the options he can give you. i don't think he will be ready to forgive the mortgage. you will have to negotiate with the lender and see if he reduces the payments.
thanks,
jerry
charge off does not mean that the second mortgage lender will forgive the loan. it only means that the lender will sell off the mortgage to a collection agency who will in turn collect the dues from you. as far as i know, you will not receive a 1099 form from the lender.
you will have to speak to the second mortgage lender and check out the options he can give you. i don't think he will be ready to forgive the mortgage. you will have to negotiate with the lender and see if he reduces the payments.
thanks,
jerry