Posted on: 25th Nov, 2008 05:35 pm
Hello,
I live in Arizona and I have an investment property that I got behind the mortgage payments because the tenants didn't paid their rent for 8 months.I was trying to work with the banks before I was late on the payments but neither of them first or second wanted to deal with me.After I was 5 months behind the payments they wanted to talk to me and I was able to work a deal with 1st mortgage and I was thinking I will do the same with second (Chase) but today I went to Chase bank to bring the account current they told me that the account was paid off in full,after the branch manager made few phone calls I found out it was charged off and the recovery department will contact me to settle.I was very surprised because 4 days ago I spoke with a chase representative on the phone and she told me the exact amount I have to pay to bring the account current and I need to to that by the end of the month and I will be fine to start the payments again.It was never mention to me the charged off may occour.What I should do next,keep doing the first mortgage payments and move on?
Please advice what are the chances for Chase to come after me.
Thank you very much
Denisa Kaporalis
I live in Arizona and I have an investment property that I got behind the mortgage payments because the tenants didn't paid their rent for 8 months.I was trying to work with the banks before I was late on the payments but neither of them first or second wanted to deal with me.After I was 5 months behind the payments they wanted to talk to me and I was able to work a deal with 1st mortgage and I was thinking I will do the same with second (Chase) but today I went to Chase bank to bring the account current they told me that the account was paid off in full,after the branch manager made few phone calls I found out it was charged off and the recovery department will contact me to settle.I was very surprised because 4 days ago I spoke with a chase representative on the phone and she told me the exact amount I have to pay to bring the account current and I need to to that by the end of the month and I will be fine to start the payments again.It was never mention to me the charged off may occour.What I should do next,keep doing the first mortgage payments and move on?
Please advice what are the chances for Chase to come after me.
Thank you very much
Denisa Kaporalis
Hi Sunshine!
Welcome to forums!
It would be better if you could accept the loan modification that the lender is offering you. This would help you in saving the property as well as your credit. However, if it doesn't work out, then you can apply for a deed in lieu of foreclosure and sell off the property. However, this would lower your credit score and you would also remain liable for the second mortgage debts.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
It would be better if you could accept the loan modification that the lender is offering you. This would help you in saving the property as well as your credit. However, if it doesn't work out, then you can apply for a deed in lieu of foreclosure and sell off the property. However, this would lower your credit score and you would also remain liable for the second mortgage debts.
Feel free to ask if you have further queries.
Sussane
maria,
talk to a bankruptcy attorney about what is known as chapter 20 which is nothing more than doing a two step bankruptcy. first, you do a chapter 13 in which the court would remove the second mortgage lien since it has no equity in the property. the second mortgage will remain but as unsecured debt which would then be eliminated with all the rest of the unsecured debt in a subsequent chapter 7 filing. talk to an attorney about this option.
talk to a bankruptcy attorney about what is known as chapter 20 which is nothing more than doing a two step bankruptcy. first, you do a chapter 13 in which the court would remove the second mortgage lien since it has no equity in the property. the second mortgage will remain but as unsecured debt which would then be eliminated with all the rest of the unsecured debt in a subsequent chapter 7 filing. talk to an attorney about this option.
those receiving a 1099 don't necessarily have to pay taxes on it. if the person is insolvent then no taxes are due. talk to a tax accountant or tax attorney.
I have been given conflicting answers regarding writing off a 2nd mortgage in a chapter 7. The house (in AZ) is now upside down on the first mortgage, so there is no equity to cover the 2nd. What is the actual law - can a 2nd be considered unsecured and written off in a second? Or Not
hi kathie,
the second loan will not be considered as an unsecured loan. you've used the property as a collateral to get the second loan. you can reaffirm your second mortgage after your chapter 7 bankruptcy is discharged and pay it off.
the second loan will not be considered as an unsecured loan. you've used the property as a collateral to get the second loan. you can reaffirm your second mortgage after your chapter 7 bankruptcy is discharged and pay it off.
Thanks Adonis. That sounds simple enough. Finally - some clarity
You're most welcome Kathie :) If you've further queries regarding mortgage or any other financial issues, feel free to post in the forums.
Back in March 2009, we worked on a loan modification with our lender. At that time, they've asked that we produced an appraisal. In 2006 we bought the house for $329K (80/15) and March 2009 the house is worth $196K (according to the appraiser the bank referred) - we live in South Florida. The rep at our mortgage bank (AHMSI formerly known as option one) told us they will drop the 2nd one but whenever we are selling the house we will have to pay it off. The amount is $63.1K. Well to our surprise, last week (August 2009) we received a call from a debt collector telling us that our lender sold them the 2nd mortgage and we need to start making payment.
Is that normal for them to sell it after telling otherwise? Can the debt collector proceed with foreclosure? I don't want that to happened but it feels like they are pushing us out of the house.
Is that normal for them to sell it after telling otherwise? Can the debt collector proceed with foreclosure? I don't want that to happened but it feels like they are pushing us out of the house.
Hi Marge,
The lender can sell off your loan to a collection agency though they have told that they would drop it. The lender did not gave you a written agreement regarding that. You can contact your lender and negotiate with him so that he calls the loan back from the collections. Then you can try for a loan modification which will help you in paying off the loan as well as saving the property.
The lender can sell off your loan to a collection agency though they have told that they would drop it. The lender did not gave you a written agreement regarding that. You can contact your lender and negotiate with him so that he calls the loan back from the collections. Then you can try for a loan modification which will help you in paying off the loan as well as saving the property.
Diana, You need to look over the fair credit report reguarding collection agencies. You need to record ever conversation you have with them...What they said can be held against them. they cannot threaten to do anything to you...file a lien against your house, garnish your wages ect...All they can say they can do whatever it takes within legal means to collect their money. If they say they are going to garnish your wages and don't they are in serious trouble....record ever conversation.
my second mortgage is charge off. can i file banckruptcy?
Hi jocelyn,
You can definitely file bankruptcy. You need to contact a bankruptcy attorney and check out which chapter of bankruptcy would be best suited for you.
You can definitely file bankruptcy. You need to contact a bankruptcy attorney and check out which chapter of bankruptcy would be best suited for you.
I live in the state of new york. My bank (Chase) Has charged off my mortgage while I was in the process of being reviewed for a modification as my interest rate is 12.5%. I cannot afford to pay and my home is no longer worth anywhere near what I owe on it.. No equity can I file for chapter 7 and possibly keep my home?
Hi Fina,
Your query has been answered in the given page:
http://www.mortgagefit.com/newyork/chargeoff-loan.html
Take a look at it. I hope it'll help you.
Thanks
Your query has been answered in the given page:
http://www.mortgagefit.com/newyork/chargeoff-loan.html
Take a look at it. I hope it'll help you.
Thanks
will I lose my house if I don't pay the collection company after the charge off?