Posted on: 09th Dec, 2008 10:28 am
client wants loan mod on 1st TD; 2nd TD is in charge off status. What if he doesn't pay 2nd TD? What is his liability?
hi melaniesuecrandall,
welcome to the forums.
a charge-off does not mean that the borrower need not pay the second mortgage loan. it actually means that the lender will stop asking for the payments. but the borrower owes the debt. so, if he walks away without making any payment, it'll have a negative impact on his credit. thus, it's better to keep paying the second loan through an affordable repayment plan. your client should have a talk with the second lender as to whether he'll be able to offer an alternative repayment plan.
for further details on this issue, check out a previous discussion on second mortgage charge off.
take care
welcome to the forums.
a charge-off does not mean that the borrower need not pay the second mortgage loan. it actually means that the lender will stop asking for the payments. but the borrower owes the debt. so, if he walks away without making any payment, it'll have a negative impact on his credit. thus, it's better to keep paying the second loan through an affordable repayment plan. your client should have a talk with the second lender as to whether he'll be able to offer an alternative repayment plan.
for further details on this issue, check out a previous discussion on second mortgage charge off.
take care